How to sell owner financed homes
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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[Music]
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
income
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
investor
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
common
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
mortgage
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
rate
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
epicbreakthrough.com
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
risk
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
two
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
away
i'd recommend at least 10 percent down
but
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
plate
as of the recording of this i use
noteservicingcenter.com
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
either
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
this
looks like and how it works click show
more
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
below
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
[Music]
![What is Seller Financing and How Does it Work? [#AskBP 074]](https://img.youtube.com/vi/tLgQIQ_wy1Y/mqdefault.jpg)
