What is Novation Strategy in Real Estate? #professorpayne #paynelessflipping
In this segment, Nathan Payne answers a viewer’s question about the novation strategy in real estate. He explains that novation permits an investor, acting as an attorney‑in‑fact, to sign the seller’s MLS listing documents on the seller’s behalf. This legal arrangement allows the investor to receive payment at closing when the buyer secures traditional financing—such as a bank loan or a family loan—rather than paying the seller immediately. The explanation is framed as a practical solution for investors who have a property listed on the MLS that fits the novation scenario.
Questions this video answers
Novation allows an investor, acting as an attorney‑in‑fact, to sign the seller’s MLS listing documents, enabling the investor to be paid at closing when the buyer obtains traditional financing such as a bank or family loan.
