01 Oct Owner Financed Note: Benefits of Selling
What is an owner financed note? Home and land can be the largest investment of a person. It requires high cost and it involves some financing. One option is owner financing where the seller extends a credit to the buyer for the price of the home, minus the down payment and the buyer will make a regular payment until it is paid fully. What the seller does not know is that they can sell the promissory note made upon the selling of the house.
Most sellers do not want to associate with the owner financed type of business because they do not know that the note they are holding can actually be sold to someone. That is why most of them do not want to be a private lender or do not have the cash to finance the loan.
The main reason for this one is people are not familiar with this kind of investment. There are many ways you can buy but most agents and brokers do not these works. You can do a land contract, equity shares, wrap mortgage and the list goes on.
Why would you sell your owner financed note?
a. You can sell it without doing any costly repairs, unlike traditional real estate selling.
b. It is a good investment than other ways. The money you earn will have a better rate of money raised from selling your note.
c. You have lump sum options. If you are going to sell your note to us, you can get the payment right away. Instant cash for your immediate needs.
d. The note is sold faster. You can sell immediately the note because most buyers will avoid the mortgage process.
e. Retain the title. You can keep the downpayment, all the money paid and the house.
How can you do a seller finance for buyers to see?
a. Add to a listing. You can add seller finance on a listing. All you need is simply add a phrase “seller finance note available” will alert all the buyers and agents that can give you a unique and great offer.
b. Present a specific option. For a buyer to buy your note, instead of asking options you can present an option of what you are looking for. This makes the offer easier and deals done so you can have your money right away.
There are many ways you can actually sell your house without financing. Just because the bank does not approve the borrower’s loan, it does not mean you can’t sell your house quickly. You can do a seller finance, create a note and then sell it if you need a quick cash.