Dawna was wonderful! She is very patient, and takes her time to explain the process and concepts that are foreign to those not familiar with the real estate realm. One of the things that I really appreciate about her is that Dawna is very proactive. Prior to the listing, she recommended various actions that helped to promote the property which also made the sale process to go smoothly. Besides her professional knowledge, she is a good person. That made the whole experience even better. We cannot thank her enough!
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 complicated than it was in the past. 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: the Dodd-Frank Act legislation has regulations for seller financing of primary residences.
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 rate of return than other places to put your cash (like a savings account). 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.