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Using “Seller Financing” to sell your property. Not all real estate transactions involve a bank or a mortgage broker. Sometimes the seller becomes a lender to the buyer.

If you have substantial equity in your property and don’t require immediate payment of all the cash from the sale, then you should definitely consider seller financing. Seller financing or a “seller take-back” is any transaction in which the seller loans money to the buyer to close on a piece of residential real estate. A promissory note is then held by the seller, which is secured by the property.

The amount of the down payment from the buyer and the mortgage to the seller is negotiable between the buyer and seller. Typically, the down payment to a seller is 10 to 35 percent of the purchase price to provide the seller with funds in case of default. The mortgage amount can be for the remainder.

Another common option is for the buyer is to get a conventional loan for a large portion of the purchase price and to finance any remainder through the seller.

Seller financing is often used…

	When the seller’s property doesn’t conform to conventional loan guidelines such as business property.
	When the seller is at a tax disadvantage to collect the proceeds at one time.
	When competition from similar properties is great.
	When the borrower doesn't qualify for conventional loan servicing or can’t come up with sufficient funds as a down payment to satisfy a conventional lender.

There are several seller-financing options and loan structuring matters to consider when using seller financing to sell your property.

For example:

	If your property has a lien against it, and there’s no restriction against resale of the property on that loan, you can ease a sale to a new purchaser by extending a large part of the sale price at the payment amount on the first balance.
	As to the rest of the price (your equity less the down payment), you can lend it at current or higher rates. Under some market conditions sellers taking a second position on a property can get good returns for assisting in the financing. The rate depends on whether you are using seller financing to move your property quicker in a buyers market, or whether an unqualified buyer is trying to acquire your property in a sellers market.
	You can also “wrap” that first balance so that the equity balance is at an enhanced interest rate because you also earn a spread on the first mortgage amount.

You should also always obtain a credit report on the buyer and review his employment history.

If you are confident about the buyer, you may not need an appraiser to set a price. All this can result in a much faster sale with less time-consuming requirements.

If a buyer faces potential pitfalls like qualifying for a mortgage, seller-financing is the best solution. You can offer to carry the contract.

Seller financing is also the way to go if you can offer the property ‘as is,’ without the hassle, and it also allows a faster and less expensive closing and moving in to the property.

Maximize your opportunities. When you sell your property, you can maximize your opportunities with seller financing.

Often a current receipt of large cash on the sale of property comes when it’s not truly needed or when the seller’s investment opportunities are for high returns only with some undesirable risk.

Taking a big tax hit is also not appealing to many sellers, and therefore seller financing can help mitigate the tax impact of the sale.

Finally, you can sell the note on the secondary note market at any time if you end up needing the cash down the road. [Your Company] would be pleased to provide assistance with selling your note, if you decide “seller financing” works for you.

Another option is to use simultaneous closes to sell your property. A simultaneous closing is two separate closings that may occur near-simultaneously. The first closing involves selling the property via seller financing and passes the title to the property from the Seller to the Buyer. When the seller financed note is created, the Buyer becomes responsible for making monthly payments. After the property sale takes place and all legal documents are recorded, a second transaction occurs wherein the private note that was created during the "first closing" is sold to [your company]. The length of time required between the sale of the property and sale of note varies by transaction.

There are lots of ways to sell your property and using seller financing is a useful tool for a growing number of people very year. This technique is growing in a large part because of the improved liquidity and trading of private secured note in the secondary note market.

Many investors are looking to secured paper as a viable alternative to the conventional markets, as a way to improve their returns and diversify their investment portfolios.

One thing is for certain. If you decide to use Seller Financing to sell your property, it is critical that you become informed. An incredible valuable resource, called “The Note Holders Handbook” will help you sort through the many topics you need to know to get the deal set up in your favor. This 22-page, information packed report is available for only $29.00.

Section 1, of the report, reviews some basics of seller carry back notes.

Section 2, shows you an example of the creation of a seller carry back note in order to illustrate several points.

Section 3, describes the steps you can take to assure the safety of your note. It also explains how to maximize your note’s value and how to make sure the payments are paid on time. It will describe how to handle late or delinquent payments and alternatives to foreclosure if the payments stop altogether. Believe it not, sometimes it can even be to your benefit when the payments stop.

Section 4, shows you several ways to sell all or part of the note if you decide to liquidate. You’ll see why selling part of your note is like having your cake and eating it, too. It concludes with a discussion of tax reporting for note holders. You’ll see why an amortization schedule for your note is vital. We’ll tell you how to get one for your note.

Section 5 briefly describes how a note is valued and how to get the best offers on your note when you sell.

All this for only $29.00!!!!!

Order your copy of The “Note Holders Handbook” today for only $29.00.