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What Is Seller Financing?Seller financing, also referred to as owner financing or seller carry-back, is when the seller of a property becomes the bank. The seller develops a mortgage, sometimes called a note. It may be perceived as hard to do but it's not. Once you learn what is involved you'll be asking yourself why you didn't think about doing this sooner. The seller either sets the terms of the mortgage or negotiates these terms with the buyer to ensure meeting both the seller's and buyer's needs. The seller holds the rights to the property through the security instrument as collateral. Who Can Use Seller Financing?Anyone who has ownership rights to a piece of property and wants to transfer those rights to a new individual.Seller Financing works with: *business *commercial property *raw land *apartment complexes *single family homes
Why Sell With Owner Financing?Owner financing is a way to dramatically increase the amount of money you make on the sale of your property. Sellers are recognizing the advantages of holding mortgages themselves. These are paper assets and incredibly lucrative investments. There are not many investments that can bring as much of a return on their money than holding a real estate mortgage.Benefits to the SellerFlexibility is one of the most important factors in why so many are choosing to offer seller financing. It typically makes selling property a win/win transaction for both the seller and buyer. The seller can advertise the payment after structuring the terms of the mortgage and this opens up a whole new pool of buyers.One of the main benefits of seller financing is the ease and speed at which it can be done. A seller financed transaction can be much faster than conventional lending many times. Instead of 30 days or more until closing you could complete the transaction in a week or two if you desire. Advantages of Seller Financing*Flexibility*Speed *Larger Pool of Potential Buyers *Marketing Property is Easier *Selling Property is Easier *Options of Long Term Cash Flow vs. the Ability to Sell the Mortgage
Click here to learn How to Qualify Buyers for Seller Financing Benefits To Buyer*Easy Qualifying*Many times a smaller down payment *Ability to rebuild credit if needed *Flexible Terms *Minimal Closing Costs *Pride of Ownership Seller Financing Gets Top DollarSeller financing gives you an added advantage of getting top price for your property. If you are in control, you can match your terms to your own and the buyer's situations. You can even structure the terms to get the payment figure that the buyer is comfortable with.By intelligently manipulating all the factors involved you can satisfy your own needs as well as the buyers. Remember too, that most likely since you are choosing to maintain control and handle this yourself, you are going to save on realtor fees also. You should not be asked by a buyer to take less than the appraised value of your property, especially if you are planning on selling the mortgage. Mortgage investors generally insist on the property being sold at least within 10% of the appraisal value. Which for the work you're doing in learning how to structure a good private mortgage, you deserve to get top dollar!
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