How To Sell Houses Using Owner Financing

it's clear

as to why seller financing is attractive

to buyers

but are there benefits if you are the

seller well offering to finance the

purchase of your property for a buyer

can result in a higher sales price a

faster sale

and passive income without common

property management headaches

just to name a few and i'm going to walk

you through how to do it but

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hi my name is matt tarrio i am ceo of

epic real estate where we show people

how to invest in real estate

with an emphasis on retiring early and

selling a house with seller financing

whether it's your home or an investment

property can increase your roi your

return on investment and your passive


accelerating your journey to retiring

early when you decide to sell

using seller financing as a tool to do

it will set your property apart from

other properties that are for sale a

private client of mine in our rei

ace program jeremiah johnson he does

this very successfully as a real estate


but you can do this one time as a

private seller of your own home also

it's not common but it's becoming more


very quickly mostly because lending

guidelines from traditional banks have

really tightened up

quite a bit buyers need more than a

pulse and

the ability to fog a mirror these days

to qualify for a home loan

of which translates to a smaller buyer

pool for sellers

now when you put your property on the

market whether you do it yourself or you

do it through a real estate agent

prominently promote your seller

financing option

you're going to attract much more buyer

traffic than

the other properties are getting that

are for sale in your market that don't

offer seller financing

and even for the buyers who are more

interested in your house

than the available financing you're

offering share with them the benefits of

your financing over a traditional


and you can move yourself that much

closer to a successful sale

when promoting focus on what's important

to your buyer

like less bank hoops to jump through

easier qualification

faster processing and flexible terms

like the down payment and the interest


if you'd like a list of these negotiable

terms you can grab a copy of the cheat

sheets that i give

to my private clients at

a strategic line of questioning can help

the buyer see the benefits of seller

financing all on their own

such as one would you be interested

in an easier and faster way of buying

this home

two would you be interested in owning

for less than it would cost to rent

three wouldn't it be nice to no longer

deal with a landlord

once you have a buyer ready to take you

up on your seller financing

there are three key things that you're

going to want to do to minimize your


and perhaps even eliminate the risk

altogether one

check your buyers work history and

credit score and you can do that by just

having them fill out a rental

application although they are purchasing

and you can run that rental application

through any number of credit check

companies a quick google search of

credit check companies

will turn up a number of options for you


require a significant down payment

because as a rule of thumb

the more money a buyer puts down the

less likely they are to default or walk


i'd recommend at least 10 percent down


20 it's preferred and if they don't have

a full 20 percent

consider splitting it up into payments

like 10 percent do it closing

five percent in three months and then

five percent more in three months after

that now number three give the loan

servicing to a professional

it's a nominal fee well worth taking the

the bookkeeping and the tax records the

late notices the collections and the

other time consuming tasks off your


as of the recording of this i use

and i've been using them for almost a

decade now if you own your property free

and clear

this is a pretty easy process just write

in the loan terms directly on your

purchase agreement under

payment terms and that should be

sufficient enough for your closing agent

to draft the appropriate paperwork if

you have an existing mortgage

it's not as easy but it's not difficult


after you negotiate your price with the

buyer identify the loan

balance on your current loan your seller

finance terms

will lie within the difference of the

two meaning

you'll be seller financing the equity in

the property

then hire an attorney or your closing

agent could do this job too

and let them wrap your seller finance

loan around your existing loan

creating an all-inclusive loan now if i

lost you there that's okay

just see below in the comments a short

video on what a wraparound loan like


looks like and how it works click show


and you'll see it there clearly labeled

now still give the servicing of the loan

to a professional

and instruct them to continue making the

payment on your existing loan

and then send you the difference for

your seller financed loan

and you're done what did you find most

valuable share with me in the comments


and if you found this useful who do you

know that might also find it useful

when their name comes to mind please

share it with them thanks for watching

i'll see you next time take care