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DOES IT REALLY PAY TO OWNER FINANCE?
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Added: 01/17/2004
Type: Summary
Viewed: 763 time(s)
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DOES IT REALLY PAY TO OWNER FINANCE?
Let's suppose you are a seller who wants to sell your home. The great thing is you can sell it FSBO, For sale by owner, or you can sell it through your realtor. Either way you will have to have it advertised. So You as a seller advertise it as $125,000. The first thing you will need to find out is how much cash do you need out of the sale. Do you need to be cashed out? If you do not need an all cash deal, how much would you need to pay bills, how much do you need for your childs college tuition, how much do you need to buy another house, maybe you are looking for a smaller home when you sell out. May be you are moving to a new location. What ever the reason, you will need to determine what your financial needs will be, and how much money you will need out of the sale. The more information you give to the note investor the better. Ok, now that you have that established, Let's say that your $125,000.00 home for sale you determine you need all cash. You need to find a buyer who can put down 10 to 20 percent in cash. The Higher the better for you. Next I would suggest that you spread the payments over 10 to 15 year period. The interest on the note should be current market rate or better. If you follow these guidelines, you will find it would be a better than average mortgage and note. Buyers everywhere would gladly buy this one. You should have no trouble selling this deal.
Here is another example of what also works:
Let's say that you have a $72,000.00 note for sale, The best that the buyer can come up with is very small. You might think that it will not benefit you at all to even sell but you need to be cashed out. Ok here we go. They put up their dowm payment to you, and you have the buyer to pay back term of 30 years to make the payments affordable. Place a ballon payment at 10 years into the mortagage. This give a short paybak term. Even though the down payment is not the
best The options could be three terriffic options. The note investor could buy the payments, and you would receive the ballon at the 10th year, or The investor could buy eveything for a lump sum of cash for the whole mortgage.
Or the buyer could put up collateral of their exsiting home that they are living in providing they are not selling it.
These are several great ways to be creative, and get your home sold qiuckly and give you cash at closing. Good luck. If there is anything we could do for you let us know. We are private note buyers of cash flows. Feel free to call either Curt or myself Randall at anytime.
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