Creative home sellers who offer owner financing to potential buyers can often sell their property more quickly (and at a higher price) in a slow market.   While applying owner financing techniques isn’t more difficult than traditional real estate sales, it is important to recognize that the buyers looking for owner financing represent a different target market than typical bank-financed customers.   Similarly, the process for obtaining a large cash payment for the seller after a note is created varies from the conventional real estate closing technique as well.

In some owner-financed real estate situations, the property owner may have an immediate need for more cash than is available from the scheduled principal and interest payments.   In order to quickly obtain a large proportion of the money due from the loan they created, the seller could sell the monthly note payments to a buyer for a lump sum of cash.  By locating someone willing to buy the [Read more...]