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Seller Financing Benefits for Realtors and Mortgage Brokers

Just what is Seller financing?

Seller financing is a loan provided by the owner (who is also the seller) of real estate to the buyer, for all or part of the purchase price. Owner financing is commonly secured through a note, deed of trust or a mortgage.

Wikipedia: Seller financing is a loan provided by the seller of a property to the buyer, to cover part or all of the sale price. This process is also known as owner carry back or owner financing.

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This financial instrument is the note, deed of trust, or mortgage that note buyers and note brokers buy at a discount from the holder of the note (the owner/seller) for higher than average yields. Many note buyers broker (sell) these notes and mortgages to institutional investors for a fee.

Others, like myself, buy these owner/seller financed notes with their personal account, like aself-directed Roth IRA, for TAX-FREE growth and withdrawal.

Here are few benefits of owner financing for Realtors and Mortgage Brokers.

Seller financing:

  1. Creates more buyers, thus more offers
  2. Pays realtor and mortgage broker commissions just like a regular sale
  3. Creates a buyer-seller relationship that allows owner to close quickly and not lose the sale to acompetitor
  4. Provides a pre-approved buyer, thus no surprises at closing
  5. Brings into the brokers control the buyers and owners brokers normally would lose due to the inflexible conventional lending requirements, thus closing more transactions
  6. Is the most inexpensive lead system in the brokers tool box, after a free referral
  7. Creates more referrals because you closed a transaction that normally could not have beenfinanced
  8. Is another tool to close more transactions
  9. Is another tool for the broker to become an industry standout
  10. Allows brokers to turn dead leads into qualified prospects
  11. Allows a more productive and effective use of Realtors or Brokers current lead system
  12. Will produce more sales with their current lead system
  13. Gives the broker a product line his competition does not think of
  14. Is convenient and saves time, thus agreeable to buyers and property sellers
  15. Qualifies buyers and properties that normally would not qualify
  16. Allows brokers to acquire knowledge and skills currently unknown by their competition
  17. Limits risk because the transaction is closed much like a regular sale, with local real estatecommission-accredited documents and accredited title companies for insurance protection
  18. Creates incentives for owner-sellers who may have other properties to sell
  19. Is an inexpensive source of financing, requiring little, if any, cost to implement
  20. Sells hard-to-sell property in a buyers market
  21. Provides enthusiastic prospects because it's ready-made financing
  22. Offers buyers pain-free financing, because no banks are involved, nor the banks associated feesand processing delays
  23. Is built-in to the sale for the buyer for an uncomplicated purchase . . . every buyers dream.
  24. When mortgage is, in turn, brokered to institutional investors (for a fee), the process is simple and trouble-free to implement because all the work is done by the note buyer
  25. When the note is brokered (sold) to institutional investors (for a fee), provides a secure and confident closing for the broker because the note transaction is funded and purchased by institutional investors (many of whom buy notes and mortgages nationwide) who have the financial capability and the expertise to perform and close the sale as agreed.

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Posted in Real Estate Post Date 04/25/2016






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