Free & Clear Home
6 Replies
Shanda Williams
Wholesaler from Lawrenceville, Georgia
posted over 3 years ago
What approach or direction should I take when dealing with a free and clear home? Owner financing is available
Brian Gibbons
Investor from Sherman Oaks, California
replied over 3 years ago
Many Realtors will make an installment sale look not attractive.
Here are steps I take to make installment sales attractive.
3 columns
1. Listing with an agent and paying the costs to sell
2. Renting and waiting and dealing with tenants
3. Seller Financing - Installment Sales
Download Sources to Educate the Home Seller on Installment Sales
Char Prado
Real Estate Investor from Alexandria, Virginia
replied over 3 years ago
@Shanda Williams
What is your "end game?" as an investor, flipper, buy n hold? If you just want cash get it under contract and sell your contract (make sure your contract says "assignable."
My one question is: If it's free n clear (you did your due diligence) why would the seller not do a traditional sale instead of offering "owner financing?"
Happy Investing
Brent Coombs
Investor from Cleveland, Ohio
replied over 3 years ago
Originally posted by @Shanda Williams :
What approach or direction should I take when dealing with a free and clear home? Owner financing is available
Welcome to BP.
Why would your approach be any different than if the home wasn't free and clear? Wouldn't your Offer be the same, based purely on your calculated good investment numbers (which should already take into account any amounts their Bank and County are breathing down their neck for)?
The availability of Owner Financing may just be a bonus that can be marketed to your end Buyers. All the best...
Benjamin Cowles
from Cape Coral, FL
replied about 3 years ago
Originally posted by @Brian Gibbons :
Many Realtors will make an installment sale look not attractive.
Here are steps I take to make installment sales attractive.
3 columns
1. Listing with an agent and paying the costs to sell
2. Renting and waiting and dealing with tenants
3. Seller Financing - Installment Sales
Download Sources to Educate the Home Seller on Installment Sales
What do you think is the advantage Brian other than a higher sales prices with interest? I've read some of your info, most went over my head, but it just looks like you can put off paying taxes, that you have to pay anyway. Anything else? Again, I did read other points but they just went over my head. Maybe you can explain a good benefit clearly. I'm just curious. I don't think that a higher profit for a motivated seller is insufficient.
Brian Gibbons
Investor from Sherman Oaks, California
replied about 3 years ago
The link above shows installment sale information from the Internal Revenue Service IRS and you do need to study it
For an owner that has a free and clear house, selling with an agent can cost about 10% of the value of the house
An Installment sale can get them interest on an investment they understand and have faith in with no sales costs
Benjamin Cowles
from Cape Coral, FL
replied about 3 years ago
Originally posted by @Brian Gibbons :
@Benjamin Cowles
The link above shows installment sale information from the Internal Revenue Service IRS and you do need to study it
For an owner that has a free and clear house, selling with an agent can cost about 10% of the value of the house
An Installment sale can get them interest on an investment they understand and have faith in with no sales costs
Thanks again!
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