Owner Financing

What is Owner Financing, Seller Financing, OR
Seller Carry-Back Financing?

Owner financing is a creative technique for selling a house.  It is
an arrangement whereby the seller agrees to "carry" the financing
of the house.  The buyer and seller mutually agree on the terms set
forth in a note.

Owner financing also helps a potential buyer OVERCOME
the single most important obstacle to buying a house.  This
obstacle is NOT HAVING ENOUGH CASH FOR THE DOWN
PAYMENT.

Advantages for the SELLER:

The ability to sell your property (house) AT OR ABOVE your asking
price.  In comparison, other sellers choose to discount their selling price.

The ability to sell your property QUICKLY while other sellers are
waiting for an offer.

The ability to avoid extensive price negotiations.  The reason being
because your buyer is WILLING to accept your asking price in exchange
for the opportunity to receive owner financing.

The ability to create a cash flow after the sale of your property.
   
The ability to ensure the safety of your note.

Increases the number of potential buyers.

Makes the house more desirable (the down payment for example).

You become the bank (finance part of the purchase price with no
assistance needed from the bank).

An appraiser is LEGITIMATELY allowed to appraise property at approxi-
mately 5% higher than fair market value if owner financing is involved.

Allows you to set the terms of the note such as the interest rate and
monthly payment.

Allows for the tax advantage of receiving payments over time instead of
receiving one total amount at the time of sale.

  The ability to sell a note to a note buyer more quickly than you can sell a
property.

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Advantages for the BUYER:

Ability to AVOID the hassle from a financial institution because of self-
employment, lack of sufficient time on the job, or a low credit score. 

Ability to obtain financing assistance from the seller if you can not afford
the down payment.

The ability to accept the seller's terms, such as asking price, without
further negotiation.  Those buyers who can NOT qualify for a conventional
loan will more than likely accept such terms.

An affordable payment plan can be arranged with the seller who is willing
to discuss options.  Since the seller is in a position to sell the house, flexibility with
the note terms is almost guaranteed.


Owner financing is NOT a desperation strategy to sell a house.  Without owner
financing, you are simply another seller competing with others with NO REAL
COMPETITIVE ADVANTAGE IN THE MARKETPLACE.

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