I was referred to Dawna by a mutual friend when I started looking for my dream retirement beach house in Cayucos. Our journey together took three years with lots of looking and discussions to finally find me the perfect house. I can't thank Dawna and her amazing Executive Assistant Jodi for all of their patience, helpfulness and hard work on my quest to find the perfect home. Both Dawna and Jodi made me feel like they had all of the time in the world for me when I called with questions or concerns. Dawna is always cheerful and such a pleasure to work with. She is very responsive and extremely knowledgeable about the central coast. I highly recommend Davies Company Real Estate for all of your real estate needs. I wouldn't hesitate to use Dawna again and I did.... I used Dawna to sell my Paso Robles home after I purchased my new home. I once again found both Dawna and Jodi to be extremely professional and knowledgeable about the market. Dawna did a wonderful job of marketing my house and went above and beyond until it sold.
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.