Articles&Reports
The Seller Finance Solution
Seller financing can be a great way to get a house sold without slashing the price. By recognizing the millions of people who can't get traditional financing as potential buyers, resourceful property sellers (and their real estate agents) can minimize their time investment in getting a property sold. Even better, sellers who offer financing can usually get a higher asking price for their property, even in the slowest markets. Clearly this is a win-win situation.
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Future Payments or Cash Now...
Creative home sellers who offer seller financing to potential buyers can often sell their houses more quickly (and at a higher price) in a slow market. While applying seller financing techniques isn't more difficult than traditional real estate sales, it is important to recognize that the buyers looking for seller financing represent a different target market than typical bank-financed customers.
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Seller Financing to the Rescue
The Problem: When it comes to selling real estate, one of the most difficult and frustrating situations for sellers is when market conditions make it nearly impossible to sell at the desired price point. A high initial listing price might be because the seller simply has an unrealistic idea of how their house stacks up against the competition in the area, or because the owner needs to sell for a set minimum price in order to pay off their loan against the property.
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Understanding the Note Buyer's Mindset
Market pricing for real estate cash flows: Banks and other financial institutions purchase cash flows on a regular basis. These payment streams are often purchased without a discount. Aside from a change of recipient address for their monthly payments, the transfer is completely seamless to the payer. These payment streams are usually purchased from institutions with similar lending parameters. This means that the buyers are familiar with the credit rating.
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