SELLING ON-TERMS (OWNER FINANCING)
If you’re like most sellers you’ve had your house for sale on the market for months only to find that many buyers don’t even qualify for bank loans. Maybe your house has been under contract before and the sale was terminated due to unqualified buying candidates. If your house is priced at a fair market value and has not been sold yet, there is usually something hindering the process on the buyer’s side.
This type of situation can be solved with one simple strategy, OWNER FINANCING!!
Did you know that there is likely 10X more potential qualified buyers for a property when it is offered for sale with terms? This will drastically increase your “qualified” buyer pool as they will have been thoroughly evaluated through our “profile screening” process.
In fact, we have even implemented the “selling on-terms” method into our own business model as we can liquidate our projects to individual buyers who are looking to purchase a property without trying to satisfy traditional lending requirements and/or do not have a solid credit profile to qualify for funding. We have qualified buyers just waiting for houses who are looking to take advantage of purchasing a property with zero closing costs and saving thousands by avoiding additional realtor commissions
ADVANTAGES OF SELLING ON-TERMS
Full Market Values for Your Property
Fast Transactions Process
You sell your property “as- is”, no appraisals, no home inspections, no upgrades
You pay no commissions or closing costs, which means much more $$ in your pocket;
A deed of trust secures your ability to take back the house if obligations are not met;
All insurance, taxes, repairs and maintenance of the property becomes our responsibility;
You receive documents (from an attorney and recorded in public record) that are evidence of your financial agreement, in other words, your debt-income ratio is covered, if you need to qualify to buy additional property;
Taking your equity over time can have definite tax advantages.
Owner Financing can be illustrated by thinking of the property owner taking on the role of the lender themselves. While a normal property contract with a conventional mortgage, the lender gives “CASH” to the buyer to purchase an asset from the seller after down-payments and closing costs are deducted, and the buyer is responsible to pay the lender the principal back with interest. In an owner financing agreement, instead of the lender (seller) giving “CASH” to the buyer, the lender (seller) extends enough credit to the buyer for the purchase price of their property, minus any negotiated down payment.