What is Novation Strategy in Real Estate? #professorpayne #paynelessflipping

Name: What is Novation Strategy in Real Estate? #professorpayne #paynelessflipping
Uploaded: 2025-01-09T23:00:32+00:00
Duration: 26 s
Channel: Nathan Payne
Description: In this segment, the presenter answers a viewer’s question about the novation strategy in real estate. He explains that novation allows an…

9 Jan 2025 · 0 min

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In this segment, the presenter answers a viewer’s question about the novation strategy in real estate. He explains that novation allows an attorney‑in‑fact to sign the listing agreement on the seller’s behalf. By doing so, the seller (or intermediary) can secure a right to be paid when the property is sold to a buyer who obtains traditional bank financing or a family‑based loan. The explanation is framed around a specific MLS‑listed house that fits the scenario, illustrating how the novation mechanism enables the transaction and payment flow.

We have a question from Michelle saying, still don't understand the novation strategy. I have a house on the MLS that fits the scenario. So the novation strategy, all it allows you to do, guys, the novation is you are allowed with an attorney-in-fact to sign the listing documents on behalf of the seller. So when you do sell it, you can get paid when someone has traditional financing, when it's a family or someone that's getting financing from a bank.