What is Owner/Seller Financing? House made of money

 

Owner Financing is when the seller of a property essentially plays the role of the bank. Right now banks are offering very good rates but in many cases they will not loan the money. Many banks are not offering lot loans in some areas. Plus, the banks seem to only want to lend to people who work as an employee of a company. There are many buyers who are independent contractors and business owners. They may have good credit, and make plenty of money to afford the payments, but because they cannot provide bi-weekly paychecks many banks don't want to lend to them.
 
Consequently, many buyers today are looking for "owner financing". In that scenario typically the seller would get at or near  their asking price, and they would negotiate with the buyers on the terms on the loan.
 
This would help buyer in a few ways:
- getting the payment into something they feel comfortable to afford.
 
This would help you in a few ways:
- better odds of getting the property being sold at full price
- better odds of getting it sold faster
- You would get some money at settlement
- You would get steady cash flow from the property
- You would not have to pay the taxes or utilities on the property any more (the buyer would be responsible for that)
- You would get the interest on the loan on top of the purchase price which would make the total amount to you even higher when everything is done.
Jean-Paul Peron
REALTOR
Living & Working in 4-Wheel Drive
The Outer Banks Real Estate Company
 
Work:  (888) 457-7376
Mobile: (252) 564-9390
JPPeron@EscapeThePavement.com
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4 Comments on What is Owner Financing?

AUG
24
1,020,977 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Owner financing requires the OWNER to provide 1099i reportint to the borrower AND IRS....a lot of paperwork
4:16am • #1
250,180 Points 8 Featured Posts Localism Sponsor Outside Blog

That would make sense. I would certainly recomend any seller willing to take this route to have an accountant helping htem at tax time.
4:44am • #2
464,252 Points 8 Featured Posts Outside Blog Called Shot Master

Many people here are hoping for owner financing but they fail to realize in our state most owners want a substantial down payment. They salivate when thinking about owner financing but then almost faint when they hear how much is needed as a down payment.
3:40pm • #3
AUG
26
250,180 Points 8 Featured Posts Localism Sponsor Outside Blog

Yes, I ofen get the same thing with buyers. They think that they can get away with 10% down on a facant lot.     When I tell them that won't work because the sellerers will have to write a check also in that scenario, they look dumbfounded. 
3:56am • #4


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Jean-Paul Peron Outer Banks houses & land for sale

Corolla, NC

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The Outer Banks Real Estate Copmpany

Address: 2254 Teal Road, Carova, NC, 27927

Office Phone: (888) 457-7376

Cell Phone: (252) 564-9390

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All about what life is like living in Carova; the only place I know on the East Coast where you can live at the beach, away from commercialization, and among wild horses.

Author Bio: Jean-Paul Peron Has been selling Real Estate full-time since 2004 and has been licensed in Delaware, Maryland, and North Carolina. J-P now resides on the northern most section of the Outer Banks called Carova where he focuses all of his time in helping clients & neighbors.

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