BiggerPockets

Sell your Home Faster with Owner Financing...

Monday, November 09

The Power is Yours to Sell Now

There are many benefits for both buyer and seller in a “no bank” owner/investor finance sale. Perhaps the most significant is the ability to sell the home faster than can be done in normal channels.

In this post we will attempt to detail how to use this amazing new tool to help you with your sale!

First let’s cover some of the basics of how to create a good note. These are items to pay close attention to because this is how the contract needs to be created.

When you advertise, note seller finance or owner will finance in the ad. No bank qualifying! This will bring potential buyers who will need creative financing and can’t get in otherwise.

Benefits of seller financing to Buyers:

• Easier qualifying

• No bank verification
  
  
• No points or junk fees
  
  
• Faster close
  
  
• Start home ownership
  
  
• Credit fix (bonus)

Sales price on a seller financed note should always be the TOP price possible. You are offering special financing. It is not a bank giving a loan and you know how hard it is to find such a loan anyway.

Interest rate on a single family home should always be 3% to 4% higher than conventional mortgage rates. We see many notes where the seller structured the note with a low interrest rate, making it harder to sell.

Always require that a credit check be pulled before sale... let me repeat... check the buyer's credit!

This always is a sticking point on notes we evaluate...the seller has no idea what the buyer's credit score is, so when we do our due diligence, we some times have to adjust our quote DOWN, or if the credit is poor... walk away.

The FICO score does not need to be perfect, but we do want to see what it is and we may even be able to help them improve it. We have a division that can do both the credit check and correction.

Seller benefits:

• Market price for your home

• Faster sale

• More potential buyers

• No hassle with long term payments

• Credit correction if your buyer needs it

The note created can be sold in full for maximum cash within 1-3 months, or in part for the maximum overall return depending on the needs of the seller at the time.

Contact us on help structuring your seller financed note.

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