If you are having trouble getting the banks to finance your loan, you might consider asking the Owner to be your Mortgage Lender. Not all Sellers will be willing to take on being the financier, but with the banks not loaning the way they did a couple years ago, we are finding this practice more widley used. Sellers are having a rough time finding Buyers and Buyers are having a hard time finding financing. Owner Will Carry is not an option on all sales, but can be a win-win situation for those that accept. Seller financed mortgages can come in several formats with all terms negotiable between both parties( Buyer & Seller). The best Seller-Financing comes with properties that are paid for and have no encumbrences. The Seller simply accepts a note (a legal binding contract) from a qualified Buyer. By using this method of financing the Seller can likely move the property faster than waiting for the current hard money market to yield an approved Buyer. If the Seller offers relaxed terms or other incentives, Seller can get a fair price for the home, a higher investment return, and tax breaks due to reporting the sale as monthly installment payments, the monthly income, and a shorter listing term. Advantages to the Buyer are less stringent qualifying, flexible down payments, agreeable interest rates, closing costs, loan terms, and rates.
I just closed one where the seller had to carry back 50K. It was a great deal for the buyer - 5% simple interest over 30 years, due in 5.
Welcome to ActiveRain!
If you would like a few tips on getting the most out of ActiveRain, please visit my blog Welcome to Active Rain. It has a few simple steps of what to do now that you have joined.
If you ever have any questions, just let me know.
Troy Trumm
Hi Jo Ann!
Welcome to Active Rain! This is a great community for learning as well as sharing. Check out some blogs, join some groups, and enjoy! Just watch out - it's ADDICTIVE!
I look forward to reading some of your future posts!
Welcome to the Active Rain community. You have chosen a great site with tons of information you can learn from.
Hello,
I would like to welcome you to Active Rain!
I hope to see more of your blogs in the future!
Educate us, learn from others and don't forget to have a little fun while you're at it!
Take care!
Hello Jo Ann,
Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!
-Keith
It certainly pays to get more creative these days, and owner-will-carry can be a good one. I have yet to find a client that owns their howe outright, unfortunately. If they did, they may not want to run the risk of the buyer defaulting. The foreclosure process is expensive and difficult. Thanks for the post!
Welcome to Active Rain and congrats on your first post. Be sure to spend some time looking around at what and how others are blogging here. It is a great education and lot s of fun. Looks like you're off to a great start...keep it up!
Thank you...... for all that have taken the time to read and respond to my blog. I will be looking forward to see what you all have to say as well. I look forward to using Active Rain as another tool to learn from, and contribute back.
I just stopped by to welcome you to Active Rain. I hope that you find it a great benefit to your business and that you see the value that I have also found here. I am from Charlottesville Virginia and using Active Rain has really increased my business!
My main blog on Active Rain is here: Charlottesville Real Estate Blog, not the link at the bottom of this post.
I hope you will look into the many groups as there are some great group both local and broad based,....
enjoy!
We invite you back to ActiveRain in 2018!
Much has changed since you last posted to ActiveRain. I encourage you to take another look at the website.
Best to you!
Comments(12)