Want to sell your house faster, increase the number of buyers, reduce closing time, receive monthly mailbox money and decrease your tax liability? If you do, Seller Financing is for you!
Here are 5 reasons property owners offer seller financing:
1. Reduced Marketing Times
What is the first thing a real estate agent does when property is not moving and has been on the market for 60 to 90 days? They reduce the price and add the tagline “price reduced” to all advertising and signs. Rather than reduce the price, it might be beneficial for the seller to offer financing. Buyers provided with financing can certainly pay full price in exchange for the many benefits they receive with owner financing, including the money they save by not paying expensive loan fees, origination fees, and points.
2. Increased Inventory of Prospective Purchasers
By offering owner financing, the seller increases marketability with a wider group of available purchasers. Statistics show that almost 40 percent of the American population is unable to qualify for traditional bank financing. While not all of the “unqualified” group would be an acceptable risk for owner financing, it still widens the market of prospective buyers considerably. Anyone who has added the words “Owner Will Finance” or “Easy Terms” to a For Sale ad or Multiple Listing Service (MLS) listing knows the phone will ring off the hook with interested prospects.
3. Reduced Closing Times
Another advantage of offering owner financing is substantially lower closing times. A closing involving a third-party conventional lender can take six to eight weeks while closing a seller-financed transaction through a reputable title company can take as little as two to three weeks. This is due to the reduced paperwork and less restrictive due diligence process.
4. Investment Strategy for Hard to Finance Properties
There are many properties that encounter financing difficulties including mixed use property, land, mobile and land, non-conforming, low value, and others. Investors realize excellent returns by paying a reduced cash or wholesale price on a hard-to-finance property and then reselling at a higher retail price with easy financing terms.
5. Interest Income
Why let the banks earn all the interest? Sellers can keep the property-earning income even after they sell by offering owner financing. For example, a $100,000 mortgage at 9 percent with monthly payments of $804.62 will pay back $289,663.20 over 30 years. That additional $189,663.20 (over the $100,000 mortgage) is power of interest income!
Summary
Seller financing can offer a homeowner or investor many opportunities to build your wealth on your terms. Feel like I need more
Want to Talk More?
Why not set up a meeting with a Peak Notes specialist to discuss how Seller Financing can help you meet your goals. Meetings are brief, cost nothing and can give you more insight into how you can maximize your investment potential!
If your property is located in Florida, please click on this link and set up a meeting with John (https://peaknotes.zohobookings.com/#/talkaboutyournote).
If your property is located in outside of Florida, please click on this link and set up a meeting with Karen (https://calendly.com/karenw-peak-notes/30Min).