In today’s market, it can be pretty darn difficult to sell a house, even if you’re offering a good price on a good property. That’s a function of two huge issues: (1) a huge supply of available houses and (2) a shortage of easily available mortgage loans, even for reasonably well-qualified buyers.
The fact is that this is a marketing issue. And one of the ways that you can give yourself a marketing advantage is to offer seller financing when selling your properties.
Owner financing takes several forms:
- Lease-Options/Lease-Purchases
- Land contracts/Agreement For Deed
- Seller carry-back notes
- Wrap-Around Mortgage
- Subject-To
In the coming days, I’ll tell you more about each of these types of transactions, and how to choose which is the best for your situation. In the mean time, use the comments area below to let us know if you’ve made any adjustments to how you’re selling/renting your properties in light of the challenging market conditions.
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3 Comments So Far»
This is great information Bryan! Seller financing is a great option to consider during a tough economy and even when simply trying to sell a property that is naturally difficult to sell due to substandard qualities. Seller financing has benefits for the buyer and seller - a buyer can often be approved with less-than-perfect credit and this in turn can make it possible for the seller to close more quickly. An added benefit for the seller is the ability to acquire cash through simultaneous closing. The seller can exchange all or a portion of the future payments they are scheduled to receive for a discounted lump sum rather than receiving the full balance over a period of several years. I look forward to reading more of your posts on seller financing!
Seller financing has been over look by investors and realtors for turning property in a slow market. Even more important is that it can be used on commercial property also. Owner financing will bring a near full price in a slow market. As a investor one can collect payments over a period of time in a IRA account or flip the seller financed note for a quick profit.
These are some of the best ways to sell in the current market. If done properly you can make substantially more than an outright sale, often without broker fees involved.
With the banks telling people they will loan but in reality are not loaning this may be the only way to reliably sell property at this time.
A major bank, the number two most in trouble bank, had a home loan fair for their employees last week, none of the people qualified for loans. What does that tell you?
Chris B.
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