Seller Financing Basics

Owner seller financing has become a common way to do a Real Estate Deal. This happens mainly when the Buyer doesn't qualify for a loan. The Seller decides to become the bank and carries back the financing of the house. He tells the buyer, "Look I can sell you the house. I'll qualify you the loan." Then the Seller provides the terms to the Buyer. Usually, the Buyer must provide a big down ayment to prove he is committed to pay his monthly payments every time on time. Once the Seller provides the down payments, the Buyer receives monthly payments for a term of usually 30 years.

Key Factors To Consider

While this my sound like a good deal, the Buyer should consider some factors before leaping into a  Seller Financing transaction.
The Seller can stop paying monthly payments at any moment when life circumstances arise, such as: a layoff, a medical emergency, a family emergency, being an unreliable person, etc...
Also, the Buyer must think about the future (What might happen?) and ask the following questions:

1. Am I going to be committed enough to save all those monthly payments and see my Return on Investment?
2. Will I be willing to receive these monthly payments instead of having all my money right now to achieve my financial goal?
3. Is this person going to keep his commitment and pay me all 30 years worth of monthly payments?

You see, before you make a big transaction, make sure this is right for you. There are lots of factors to consider doing seller financing. It takes a lot of commitment and responsibility, but it can be simple if managed properly.
These are some things to consider before selling your home through Seller Financing.
One more thing, if you already have a Real Estate IOU Note or any type of Note secured by property, receiving monthly payments, would like to get out of the IOU note contract, sell your note and get a lump sum of money for your Real Estate Note, you have the option to sell. I can help you get the best price for you IOU note.