Creative home sellers who offer owner financing to potential buyers can often sell their property more quickly (and at a higher price) in a slow market. While applying owner financing techniques isn’t more difficult than traditional real estate sales, it is important to recognize that the buyers looking for owner financing represent a different target market than typical bank-financed customers. Similarly, the process for obtaining a large cash payment for the seller after a note is created varies from the conventional real estate closing technique as well.
In some owner-financed real estate situations, the property owner may have an immediate need for more cash than is available from the scheduled principal and interest payments. In order to quickly obtain a large proportion of the money due from the loan they created, the seller could sell the monthly note payments to a buyer for a lump sum of cash. By locating someone willing to buy the monthly payments, the seller will have ready cash for a down payment or any other pressing financial need. The Texas Note Company just completed a note sale where the seller had a need for more cash than the monthly payment was providing. The closing took a little longer than expected and there were a few hang ups that ultimately cost the seller money.
Robert E Young is the Founding Director of The Texas Note Company. He is a Real Estate Investor who puts real estate transactions together using proven seller financing strategies and techniques. He purchases and brokers private real estate notes often enabling home sellers the ability to move on to the next transaction with the cash needed. Robert enjoys teaching and educating real estate minded people the advantages of Owner Financing and what it can bring to a real estate transaction while dispelling it’s myths. When traditional financing methods fail to provide the benefits buyers and sellers are looking for, often it is seller financing to provide a solution.