"Dawna and Rachel were a complete delight to work with. Through their guidance, expertise, and negotiating abilities, I was able to accept an as-is offer, that was over asking price, within one week of going on the market. While the circumstances around the sale were incredibly complex, they managed to overcome every obstacle. It should also be noted that Dawna didn't just quickly list my house for sale to churn out a quick transaction. First, she helped to set up an estate sale and landscaping services. She then set up a home inspection and went on to use that report to receive sub contractor bids for the repairs needing to be made. This helped to create transparency and negotiating power during the transaction, which ultimately led to a quick, as-is sale. Dawna was incredibly communicative, informative, diligent, and thoughtful throughout my first real estate transaction. Her service most certainly exceeded my expectations and I can comfortably say that she will be my local realtor for life. I would highly recommend procuring her services."
1. Seller financing can be a great benefit to you. “Carrying back paper” is a way for you to get your price, and let your equity in the property go to work for you.
2. It can be a generous income stream with minimal work. If you have had your property as a rental, this may be a way for you to get the same or higher income without the hassle of property management and expenses of property ownership.
3. It can make your property more marketable to a wider array of buyers. Financing with conventional lenders is more difficult today. Many highly-qualified buyers want to buy in today’s market, but cannot qualify for conventional loan standards due to self-employment status, unconventional income sources, recently resolved credit issues, etc. Note: Recent legislation, the Dodd-Frank Act, has new regulations for seller financing of primary residences as of 1/10/14.
4. Not every seller needs a lump sum of cash at closing of a real estate sale. If a buyer will pay you a desirable interest rate on the note and trust deed, it may give you better returns than other places to put your cash. In fact, you can sell your secured note and trust deed against the property if you need cash instead. As with all real estate transactions, there may be tax implications to your sale and seller financing that you should review with your tax advisor.
5. It is possible to get the property back in foreclosure. If the buyer does not make the payments, you should refer to the terms in the note and trust deed. Your recourse against the borrower may include receiving the property back, while you keep the buyer’s initial down payment, and all payments made to date.