How “Seller Financing Available” or “Owner Will Carry” Can Help the FSBO Home Seller

It’s no secret our economy-especially the real estate market-is in turmoil. Ten percent or more of Americans are unemployed. Nobody has even compiled statistics for the number of people who are surviving on a drastically reduced income. More than 5 million homes have been foreclosed on and more are still expected to come as people simply walk away from upside down situations. The Real Estate market nationally has approximately a 12 month supply meaning it will take property owners who do not offer a significant price reduction over their competition, 1 full year to sell.

Does that fit into Your Time Frame?

Are you willing and or able to take the drastic price reduction that will bring you a buyer?

Downward pressure on prices, buyers simply holding back, and the inability to secure traditional financing is creating extreme competition for the limited few buyers that are out there. You however – The For Sale By Owner Seller – can create your own competitive edge, your own market, your own liquidity and,

Get Top Dollar for your sale by offering Seller Financing!

Why Are You Selling Without the Assistance or a Real Estate Agent?

1) You want to keep All proceeds from your sale and not give away 6% paying agent commissions.

2) You are very familiar with the process-maybe an agent yourself-and do not necessarily need the assistance of an agent

3) You just don’t like real estate agents

4) You are trying to get out of a bad situation-maybe very close to upside down-and there simply is not enough equity to pay commissions

5) You WANT to Keep ALL the proceeds from the sale

Regardless of the reasoning behind doing FSBO the fact of the matter is, this is a very strong buyers market but with only a limited few buyers and the competition for sellers to attract them fierce. They are bargain hunters, and with so many foreclosure and short sale opportunities available you aren’t getting any interest in your full or near full property value sale price.

3 Magic Words to Create a Fresh New Market

By adding these three words-“Seller Financing Available”or “Owner Will Carry”–to your ad, you have the potential to pull in as many as 20% more potential buyers, that your competition is turning away. There is a multitude of would be buyers who for many different reasons cannot secure the traditional financing they need to make the purchase they want. Buyers who have CASH, an eagerness to buy, and many who have decent to very good credit. These buyers are now searching high and low for the 3 magic words that could allow them to make the property purchase-YOURS-they are looking for. Include these words in your ad and your phone will start ringing again.

What do These 3 Words Mean

Seller Financing Available, or Owner Will Carry simply means you will act as the bank. Without any money out of your pocket, you will loan the buyer the money they need to purchase your home- or whatever other type of property you are trying to sell as this strategy works for any type of real estate, or even for the sale of a business. This is how it works. You and your buyer will create the terms that are agreeable to both of you. You can set these terms up in any way you want–there are no restrictions. Everything including but not limited to Interest Rate, Down Payment, Length of Repayment terms, Balloon Payments, Monthly Payment, Special Clauses, even Sales Price is negotiable. Then you will draw up, or have them drawn up by an attorney-highly suggested-the contracts and the all important “Mortgage Note”. These are the binding documents obligating your buyer to pay as per the terms set forth within them. It’s really that simple. You then close the transaction just as any other real estate transaction through a title company, and set forth the agreement.

How Can This Help You with Your Property Sale

I’ve already pointed out how just offering seller financing will help you gain a huge advantage over your competition by bringing in more potential buyers tapping into a virtually untapped resource. Seller Financing can also provide the seller with these additional benefits: 1) Get Your Asking Price–Possibly Even More-Regardless of the existing market conditions around you 2) Close Quickly 3) Get Cash at Closing 4) Defer Capital Gains Taxes that your net profit will be exposed to, thus creating the potential for you to hold onto even more of it 5) Create a Positive Cash Flow for your Future 6) Have the availability to obtain a Lump Sum of Cash at any time 7) Create an Overall Larger Net Gain from Your Sale I’m sure that at one point or another all of these “benefits” must have been taken into consideration in relation to your property sale, although some of them such as capital gains taxes may not have been viewed as an actual benefit. Seller financing adds a positive spin to each one of these factors every property owner must consider when selling.

Tips to Help You

There are still many questions to be answered should you decide this strategy could work for and many of you may even still have doubts about offering seller financing. It is strongly recommended you hire a real estate attorney to help answer these questions and quell any doubt or concerns you still have. The retainer fee will be well worth it and realistically not all that much when compared to the benefits and increased profit potential. It is also strongly recommend you incorporate the assistance of a reputable mortgage note service. While an attorney can help you with all of the legal aspects, advise you on potential pitfalls and benefits, and draw up the contracts and documents for you, they may not be very helpful in the actual structuring of the deal. This is where a Note Service can help. Depending on your individual needs and what your ultimate goals are, the way you structure the deal can either supplement, hinder or possibly even negate your final results. An experienced mortgage note specialist can help guide you through your buyer negotiations and help you generate the terms of the sale that will uphold your ultimate goals. You don’t want to find out after it’s too late you created something that limits the full potential of your Owner Carry sale.

Shhh-I’ve Got a Secret for you

Seller Financing/Owner Carry Financing your FSBO– CAN put a lot more CASH In Your pocket than a traditional real estate sale, and help you do it Faster.

The banks DON’T-Want-Anyone to know this! Neither do the Real Estate Agents– So keep it quite and TELL EVERYONE!

PSR Note-ability-Mortgage Note specialists

Specializing in privately held mortgage notes created from a seller financed sale of real estate. Residential, Commercial, Multi-family, Apartments, Vacant Land, Special Use, and Industrial Property. We also buy Business Notes created from the seller financed sale of your business. Buyer stopped Paying? We may be able to purchase your defaulted notes, no matter how old they are, and Cash you out of a dead end situation. Receive a large lump sum payment for your future incoming small monthly payments. Not a loan, this is already your money which you can use any way you want and Never have to repay.

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