The easiest way to get your house sold is to hold the mortgage for your buyer. This is simple as pie. Lets assume Mr. Seller has his free and clear house for sale for $100,000. Mr. Buyer makes him an offer to buy it if he will take $30,000 down payment and hold a purchase money mortgage for $70,000 at 6% interest with payments of $500 per month. How could Mr. Seller go wrong? What are the odds that Mr. Buyer will default on this mortgage? Pretty slim. If Mr. Seller is reluctant, Mr. Seller could ask for $40,000 down and hold a $60,000 mortgage at 6% with $500 per month payments. Where could Mr. Seller invest that money at a 6% safe return in today's world? This is a good deal for Mr. Seller and Mr. Buyer.
What is the advantage to the seller? His property is sold. He has a $500 per month income. What is the advantage to the buyer? He doesn't have to get the property appraised and surveyed and beg the bank to loan him the money and pay them $3000 in junkola fees. Also read my other article about owner held mortgages. http://ronclimer.blogspot.com/2013/04/seven-reasons-why-i-love-owner-financing.html What is the advantage to the Realtor? We are sitting at the closing table a week after contract. You gotta love that.
Why don't more buyers buy this way? Why don't more sellers sell this way? Because they don't understand it. Their Realtor doesn't understand it . Cash is easy to understand but is often hard to find. Owner financing will solve every one's problem. If you have any questions about owner financing or any aspects of a real estate transactions, call Ron Climer at 828 290 1000. The more you know, the easier it is to sell or buy real estate . If I can help you get your real estate sold or help you buy some real estate , contact me. www.ronclimer.com www.hendersonvillekw.com
If you prefer a video explanation https://www.youtube.com/watch?v=pRyWo--Wg0I
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