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Rainmaker
681,724
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text
Nov 04, 2018 10:57 AM
Rainmaker
1,507,666
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Very uncommon. It is such a disadvantage to a seller that most attorneys don't recommend sellers do it.

Nov 04, 2018 09:53 AM
Ambassador
2,344,889
Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  Seller Advantage =  Good ROI, secured by real estate

  Buyer advantage =  No underwriting, no bank fees.

  Buyer disadvantage =  higher downpayment, higher interest rate (typically 2 points or more over market).

Nov 04, 2018 11:25 AM
Rainmaker
657,924
Chuck Willman UtahHomes.me
Utah Homes - Alpine, UT
Utah Homes

Advantage: Seller finds a buyer and possibly realizes the equity gain without a traditional closing. Also, seller may be able to regain possession if the buyer is unable to secure take-out financing. Buyer is able to purchase a home without a traditional mortgage.

Disadvantage: Seller may incur a lower credit rating if the buyer is not able to fully purchase the home. Seller may also be required to repossess the property if the buyer defaults. Buyer may not be able to find a new loan to satisfy terms of the private financing and may go into default.

Finally: this is not a common form of financing in traditional markets. It does come into play as a form of financing in investment properties and among those who have the means but insufficient credit score to obtain a traditional mortgage.

Nov 04, 2018 10:38 AM
Rainmaker
3,173,474
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Back in the day when rate were very high. Not in the last 15-25 years!

Nov 04, 2018 10:04 AM
Rainmaker
3,245,976
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Advantages/disadvantages can be learned in your course material.

Personally I have not encountered seller financing in my career. 

 

Nov 04, 2018 09:34 AM
Rainmaker
383,457
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

The seller is the bank.  Advantage - they receive monthly payments at typically a good (higher than normal) interest rate and retain the right to foreclose of the buyer doesn't pay.  For the buyer, they may get ownership of a property they may not qualify for with conventional financing options.

Nov 04, 2018 04:01 PM
Rainmaker
1,026,432
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Never had to deal with seller financing.

Nov 04, 2018 02:09 PM
Ambassador
907,460
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

In investment property, my buyers have taken over four property this year using Bond for Deed or owner financing. Everyone wins including the Realtor. 

Nov 04, 2018 11:50 AM
Rainmaker
2,426,103
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

If the buyer is solid and of course has been vetted and has put down a nice down payment 20-40-%, the house is security for the loan what better investment can there be especially if you add a reasonable interest rate. You can balloon payment it, have it optioned to continue. If buyer defaults, you get the property back. It is something worth considering to be sure...

Nov 04, 2018 11:28 AM
Rainmaker
1,566,585
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

Daniel Lloyd they were totally unheard of here until our oil boom and then they were popular. I warned everyone I could that it was essentially renting your home until these oil field people moved on and then they would walk away. That's exactly what happened in almost every case PLUS in many they trashed the house knowing they never intended to stay in the 1st place.

Nov 04, 2018 10:51 AM
Rainmaker
4,320,201
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Daniel,

That has been covered by many here! A

Nov 04, 2018 10:49 AM
Rainmaker
985,479
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Rarely. Only if  seller priced the home too high he can not sell.

I hope you pass the test soon. We have been seen you here for sometime now.

Nov 04, 2018 10:42 AM
Rainmaker
4,875,248
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

in a market when interest rates were very high and there was no mortgage, we had several sellers who held a mortgage on the property for a short number of years....

Nov 04, 2018 10:25 AM
Rainmaker
2,765,439
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I've never encountered seller financing in my 15+ years in real estate. 

I wish you all the best with your real estate studies.

Nov 04, 2018 06:13 PM
Rainmaker
5,269,587
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Common in land deals. 

Nov 04, 2018 01:59 PM
Ambassador
4,064,084
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Advantages, you often get a higher price, disadvantages you can get back a trashed property.

Nov 04, 2018 12:21 PM
Ambassador
1,614,024
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I have never done one in 28 years if that is an answer.

Nov 04, 2018 10:58 AM
Rainmaker
744,717
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Advantage:

1. You come to realize why the banks have all the money
2. Notes are very portable. Seasoned notes very MARKETABLE
3. Solves problems with buyer qualification usually related to income not W-2 based

Disadvantage
1. They choose not to pay
2. If the seller has sold more than five houses in the past they, they are literally  screwed.
3. All profit forfeited to attorney to recover non-performing note.

 

 

Nov 04, 2018 10:38 AM
Ambassador
3,192,502
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

They're not common enough to discuss. If it does happen, I'd enlist counsel - period!

Nov 04, 2018 09:07 PM
Rainmaker
3,977,717
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

having to cancel the contract because of non-payment

The interest could be a good investment

Nov 04, 2018 05:42 PM
Rainmaker
653,268
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Some advangtages: seller earns interest on the loan; buyer does not have to qualify for a conventional mortgage; there may be a tax advantage for the seller who receives payment for the house over multiple tax years.

Common, they are not very.

Nov 04, 2018 04:02 PM
Rainmaker
2,901,863
Richard Weeks
Dallas, TX
REALTOR®, Broker

Advantage for buyer quicker apprval, and less credit qualification, disadvantage higher interest rates.  They are fairly common for investors.

Nov 04, 2018 12:05 PM
Rainmaker
734,927
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

They happen but not often

Nov 05, 2018 02:38 AM
Rainmaker
4,431,983
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Not common.

Nov 04, 2018 05:33 PM
Rainmaker
724,785
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Not very common. It might help a buyer purchase a home when they need funds quickly or can't get a mortgage easily. Big risk - if the selller has a mortgage on the house already, he doesn't get to pay it down with funds from the buyer and the buyer has no real recourse if original mortgage holder (i.e. seller) stops paying the mortgage. 

Nov 04, 2018 12:45 PM
Rainmaker
1,457,212
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Not common at all in our area.

Nov 05, 2018 11:49 AM
Rainmaker
1,936,153
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Very common, especially on land sales. Advantage is your seller gets a nice little annuity as long as what they are selling has no mortgage, that they don't need to replace the property like in the case of primary and only home. Set up correctly, the risks can be minimized. Insurance notice with seller listed as mortgagor. No appraiser means none of the underwriting hoops to jump through or valuation hurdle to clear Daniel Lloyd ! Close immediately without 6 to 8 week or more delay. Bought one lake property with better loan rate than bank, missing all the closing costs except the promissory note, mortgage. No prepayment penalty and everyone was happy. 

Nov 05, 2018 03:32 AM
Rainmaker
2,980,548
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I have no experience with seller financed mortgages in 25 years.

Nov 05, 2018 02:11 AM
Rainmaker
3,073,317
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Will have to see what others are saying

 

Nov 10, 2018 11:06 AM
Rainmaker
1,280,566
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

You have many answers here.  I'll just add that is offers the ultimate flexibility to meet both seller and buyer needs, without all the red tape of traditional financing.

Nov 08, 2018 03:46 AM
Rainmaker
4,023,952
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have not seen any yet.

Nov 07, 2018 06:35 PM
Rainmaker
527,350
The Villages Realty
The Villages Realty - San Jose, CA
"Our Performance Will Move You!"

They don't eem to be too common anymore in my area.  Like not at all...

Nov 07, 2018 09:51 AM
Rainmaker
1,035,372
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

Never had it in my case. 

Nov 05, 2018 11:21 AM
Rainmaker
1,212,449
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

More rare than sightings of bigfoot!

Nov 05, 2018 08:04 AM
Rainmaker
693,732
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Since the terrible, poorly thought-out and totally unfair tax reform of 2014-2015 by the previous administration, it killed the seller financing market and pissed off this investor market niche. I use to do a few a year, that benefited BOTH parties, but since then, none.

Nov 05, 2018 06:17 AM
Rainmaker
4,796,551
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Not very common.  Because of the risk to the seller, the rates and conditions typically are not beneficial to the buyer.

Nov 05, 2018 05:33 AM