What the Heck Is Novation in Real Estate (And Why More Investors Are Using It)?
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If you’re in the real estate investing world, you've probably heard the word “novation” floating around lately. It sounds fancy. Maybe even a little intimidating. But in reality? It’s a creative strategy that’s helping investors do more deals with less capital — especially in today’s tight market.
So… what is novation exactly?
Let’s break it down.
💡 Novation, Explained Like You’re 5 (or Just Tired)
Imagine this:
You make a deal with a seller — but instead of buying the house yourself and reselling it, you get permission to market it to a retail buyer (usually after a few repairs or updates). Once you find that buyer, you replace the original contract with a new one, close the deal, and take your cut.
The seller gets the price they wanted.
The retail buyer gets a spruced-up house.
You get paid — without ever owning the property.
That’s novation in a nutshell.
It’s basically “I’ll take care of everything, you just sit tight.” And in the right situation, it’s a win for everyone.
🧠 Why Investors Love Novation
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No hard money loans
You’re not closing on the property before reselling it — so you don’t need funding upfront. -
Access to retail buyers
Instead of wholesaling to another investor, you can list the property on the MLS and sell for top dollar. -
Better for some sellers
They don’t have to do repairs or deal with showings — you handle it all.
It’s a more flexible, retail-friendly way to do off-market deals — perfect for situations where wholesaling doesn’t quite fit.
🚨 But Here’s the Catch…
Most sellers have never heard of novation.
So when you show up talking about “replacing contracts” or “bringing in a retail buyer,” their guard goes up.
That’s why your first impression matters more than ever.
You can’t lead with legal lingo or investor-speak.
You need to start with trust.
✍️ That’s Where First Touch Letters Comes In
Our handwritten mail is designed to feel like it came from a neighbor — not a company. It's warm, honest, and simple:
“Hi, I’m interested in your property. If you’re thinking about selling, I’d love to chat.”
No fluff. No gimmicks. Just real handwriting, from real humans — the kind of letter that gets opened and actually read.
That kind of trust-building is critical when you’re introducing something like novation. Sellers want to talk to people, not pitch decks.
🌌 Stay in Orbit with the Cosmic Postcard Sequence
Novation deals don’t always happen on the first touch. That’s why we created the Cosmic Postcard Sequence — a 3-part handwritten postcard campaign that keeps your name in front of sellers without being annoying.
Each card is spaced out and written to feel personal — not spammy. It’s follow-up that actually works.
🚀 Novation Is Smart. Your Mail Should Be Too.
If you’re using novation to structure better, more profitable deals, don’t waste your first impression with boring mail. Use handwritten letters that get noticed, build trust, and lead to real conversations.
Start with a letter.
Stay top-of-mind with the Cosmic Postcard Sequence.
And close more novation deals with mail that’s actually worth opening.