Owner Financing, An Old Idea That Works in 2018

     Yesterday, we listed a lakefront lot near Hendersonville, NorthCarolina.  This five acre lot is a good buy at $99,900.  The trouble is getting financing.  Banks are not too keen on loaning money secured by vacant lots.

      The good news is that I asked the owner of this lot if she would finance it for a buyer.  She said,"Certainly".

     If you are a buyer, there is no better way to finance your real estate purchase than to have the seller hold the mortgage for you.

     Instead of going to the bank and giving them your life history and begging them to loan you the money, just make your offer on the $100,000 vacant lot.  Make your offer with you, the buyer, putting $25000 down and asking the seller to let you pay the $75,000 balance over a ten or fifteen or twenty year period of time.  Why would the seller say no to that?  The seller would probably want the buyer to pay interest and monthly payments. Of course!

Owner financing makes selling faster.  You will love the interest.  

Usually the only reason that the seller would say no to that is that is because they don't understand.  It is the listing agents job to explain it to the owner.  Most sellers that have sold a lot or a house and held a mortgage loved it.  That monthly check just keeps rolling in every month.  Usually their only regret is that they only own one mortgage.

     I have bought many houses with owner financing.  I have sold a few with seller financing.  It is a great way to buy or sell a house or a vacant lot.  Where else, in today's business climate, can the seller get a decent interest rate on his money? 

     One reason many sellers "think" holding a mortgage is not a good idea is they tell me things like, "I need the cash to buy an airplane or a truck or another property."  Can't you buy any of those things with the incoming payments?  Yes, you can.

     People tell me,"We want to invest that cash in the stock market or buy a mutual fund.".  Invest the $500 per month in the stock market or mutual fund.  That will work. Holding a mortgage is an investment, a good investment. 

     If you have a property for sale, offer to hold a mortgage.  Your property will sell faster and for more money.  You will feel like that interest is falling out of the sky.

     One of the first houses I ever sold with the owner holding a mortgage was for a seventy year old single man.  The price was about $90,000.  He owned it free and clear.  I was about thirty years old at the time.  As we chatted, he told me about his three financially irresponsible daughters.  I asked him how long did he think it would the three daughters to spend their inheritance.  I pointed out to him that if they inherited a mortgage, they would receive payments for years to come.  Leaving an heir a mortgage is a wonderful way to be remembered.

     If you have a house for sale near Hendersonville, North Carolina, call me at 828 755 6996.  I will help you get it sold.  If you have any questions, call me or leave a comment here at the end of this article.  I have a description of  owner financing on video. https://www.youtube.com/watch?  
v=Dbg8GFXH2To        Watch the video.  If you have questions, call me or leave a comment here.