18 Reasons Why Seller Financing Should Be The First Thing You Ask For

 

Thank you for continuing this investment journey with me. Together, we can accomplish more than
either of us would alone. Let me share with you just one of many possibilities that await you in real estate
investing.

One of the most underused tools in real estate is seller financing. Most people finance their properties
through a bank or mortgage company. Seller financing works exactly the same way, except the seller
issues the mortgage.

Seller financing looks just like a regular loan on paper. There is a term, a loan amount, a payment
schedule, and an interest rate just like a normal mortgage. However, seller-financed loans have many
benefits over regular financing for both the seller and the buyer. Consider just some of the advantages:

 Seller’s Advantages

v     Quick, easy and everyone qualifies

v     Cash at closing and payments over time

v     Taxes only paid as principal received

v     Can add balloons and prepays on loans

v     Great opportunities for security

v     Possible to get property back

v     Can continue monthly income

v     No more property management

v     Can sell property for more

 Buyer’s Advantages

v      Quick, easy and everyone qualifies

v      Can negotiate with seller unlike bank

v      Loan does not damage credit

v      No loan fees and minimal closing costs

v      No money down

v      Can provide security with other property

v      No tax returns or proof of income needed

v      Can quickly bail out distressed seller

v     Can make a partnership with the seller

As you can see, seller financing creates fascinating opportunities because it meets the needs of both
sides of the transaction. While seller financing can be intricate, it is very basic at its core. Once you
understand seller financing, you can use it to make great profits!

Sellers are often afraid to use seller financing because they perceive it to be risky and not in their best
interest. In truth, sellers benefit from financing the deal themselves because they have more control over
the situation.

Buyers often do not know how seller financing works and lack confidence to “sell” the idea
to the sellers. If buyers and sellers understood the benefits of seller financing, you would see more of these
types of deals. Seller financing creates solutions in real estate transactions.

In closing, let me show you how seller financing can enhance your real estate investment opportunities.


Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate


2011-10-23T12:15:14+00:00