Epic Real Estate

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Jul 29, 2019
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In this video we're discussing how you can sell a house using owner financing. You can do this whether you're a property investor or you're selling your own home. There are two key benefits of owner financing: 1) It sets you apart from other properties that are for sale 2) It can increase your ROI and your passive income While it's not exactly common, owner financing is growing in popularity especially as lending guidelines have tightened up over recent years. When you put your property on the market, it's important that you prominently promote your seller financing option as you'll attract much more buyer interest. It makes your property highly attractive to buyers compared to a traditional mortgage because it means: - less bank hoops to jump through - easier qualification - faster processing - flexible terms like the down payment and the interest rate When you have a buyer ready to take you up on your seller financing there are 3 things to do in order to minimize your risk: 1) Check your buyers work history and credit score 2) Require a significant down payment (at least 10% down) 3) Give the loan servicing to a professional As far as the owner financing contract is concerned, if you own your property free and clear, everything is straightforward - write your loan terms in the purchase agreement under 'Payment Terms'. If you have an existing mortgage, identify the current balance on your existing loan. Your seller finance terms will lie within the difference of the two meaning you'll be seller financing the equity in the property.