Owner Financing for All Cash

Since most banks are reluctant to provide residential loans these days, a home seller needs to consider alternatives. It is of little use to complain about the lenders. The only thing you can do is figure out another way to make the sale.

Offer seller financing…before you freak out I’m not a bank, yes you can do it, and safely too. Here’s how…

Contact a hard money lender or ‘note’ professional. Explain your goal. Let that person design the financing. S/he is just like the bank with private investors as lenders. Ask for specifics on what they would require in terms of down payment, income, and credit. Preposition yourself this way then offer seller financing to qualified buyers.

You will get cash at close minus the lenders costs. This is the cost of no sale versus a successful sale. The other part is that when the buyers have shown a track record of payments for say one year…then they can refinance from a bank at a lower rate.

Always keep your mind open to ‘how” do I?