Explore Seller Financing; It Can Save You From The Bureaucracy Of Traditional Financing Institutions
Seller financing also known as owner financing, is an alternative to traditional institutional financing. It can be used when a property seller is willing to accept principal and interest payments on a regular periodic basis over a specified time. In essence, the seller agrees to act as the bank and receive monthly payments, together with interest, on the agreed sales price.
Seller financing allow you to purchase properties without the delay and bureaucracy of bank financing. These instruments also eliminate some of the stringent and inflexible restrictions associated with institutional buyer qualifying.
In this technique of buying property, a seller will;
- Collect interest at higher rates than savings accounts or most other secured investments.
- Spread the tax due on gain from the sale of a property over several years under certain circumstances.
- Have more money working at higher interest rates.
- Use or leverage the contract also known as a “note” or “mortgage”to purchase, or secure the purchase of other properties, obtain other financing, or create cash.