The Truth About Seller Financing:
Sell Fast Without Sacrificing The Asking Price
The problem
When it comes to selling real estate, one of the largest obstacles sellers face is a depressed market. When market conditions are poor, it is nearly impossible to sell at the seller’s desired price point, even if the property has attractive upgrades such as an updated kitchen or new flooring.
With traditional property sales methods, the only way to prevent the property from sitting on the market indefinitely is to drop the price. But in cases where the seller is unwilling to lower his asking price, this is not a practical solution. Without an alternative strategy, the seller is forced to keep the house on the market for an extended period of time with an unrealistic asking price, hoping for the right buyer to come along. And we all know that “perfect” buyer might NEVER materialize!
Privately financed real estate sales, however, can be the perfect solution for these “tough sell” situations.
The seller finance solution
Many home sellers are turning to private financing to get rid of properties fast without dropping the price. It makes sense because a price reduction doesn’t always work – especially in a highly competitive or depressed marketplace. Private or seller financing is a powerful tool to remedy real estate situations that otherwise look grim.
What makes seller financing work in this type of environment is that it attracts an additional group of potential buyers – thereby opening up a unique, untapped market and increasing the chances of a successful sale. These potential home buyers who aren’t able to buy a house via traditional lending are the key to the seller finance solution.
A large percentage of people throughout the country cannot get approved for bank funding to buy real estate because of their credit situation. Many of these people are still in the market to buy a house, however.
The “credit-challenged” are often frustrated with the limitations of apartment living or being renters. These individuals view the seller finance option as a great opportunity to stop throwing away money on rent and start living the American dream of home ownership.
A savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it into a bona fide seller’s market. By using this type of creative financing, real estate sellers could actually end up getting MORE than their original asking price, even in a depressed market.
The home buyer also comes out a winner because he can now purchase a home that would otherwise be out of reach. And if there is a real estate agent involved, she also benefits by collecting a commission from a successful property transaction that would not have taken place via traditional means.
It’s one of those rare situations where everyone at the negotiating table gets what they want.
Turning the sale into cash
So what happens if the buyer does not put down a substantial initial payment and the seller needs additional cash to purchase another property? That’s where the beauty of seller-financing comes into play. It’s possible for the seller – now the mortgage holder – to turn around and sell the mortgage note for a lump sum of cash.
Finding a potential buyer for a mortgage note is easier than most people would even imagine.
As a professional note finder, I specialize in helping holders of mortgage notes get immediate cash for their paper asset. Contact me if you hold a mortgage note, whether it’s a newly created seller-financed cash flow or a more mature note – I can help you get the cash you need.
