Seller Financing
Seller Financing is a “WIN-WIN” Situation for both REAL ESTATE INVESTORS/ LANDLORDS and BUYERS alike.
For REAL ESTATE INVESTORS/ LANDLORDS, offering seller financing creates higher prices, bidding wars, and competition amongst buyers. There are not a lot of properties offering seller financing, so those that need seller financing are fighting over the same property. This creates attention thereby creating a seller’s market, within today’s buyer’s market, allowing the seller to dictate price and possibly sell their property above fair market value. Another advantage for REAL ESTATE INVESTORS/ LANDLORDS is seller financing is a great tool to generate additional capital for future real estate investments and is it is a great “no-money down” strategy for buying both residential and commercial properties. For example, I work with an investor that purchases bulk REOs from banks. Once he purchases the property and rehabs them, he sells them using seller financing, holds the paper for a few months, and then comes to our company to sell his notes. He uses the capital from the sale of his notes to purchase additional REOs. He constantly repeats this cycle…a “WIN-WIN” Situation for all vested parties.
For BUYERS, seller financing is a way to to purchase property because he/ she cannot get approved for bank funding due to of their credit situation, other negative factors, or maybe they do not have enough capital to provide a 20% down payment. We are in a time of stricter lending standards and instability in housing prices. Another common problem, in today’s market, is many appraisers are “low balling” appraisals to hedge against further property depreciation thereby protecting banks. One way for sellers who are motivated to sell, is to offer seller financing…a “WIN-WIN” Situation for both buyer and seller.
Seller Financing is a “WIN-WIN” Situation for both Realtors and THEIR CLIENTS alike.
For Realtors, discussing seller financing with your clients, as an option to sell their property, is a way to close on properties with buyers who cannot get approved for bank funding because of their credit situation, lack of capital, or other negative factors. We are in a time of stricter lending standards and instability in housing prices. Another common problem, in today’s market, is many appraisers are “low balling” appraisals to hedge against further property depreciation thereby protecting banks. In this case, the only way to make up the difference and close the deal is for the seller to offer financing and carry back a second mortgage. The both of you receive what you want…YOU the REALTOR earns a commission and your client gets the property they want or your client is able to sell their property. More importantly YOU the REALTOR builds a reputation as a problem solver and will possibly gain a future client because you know how to close what seems like an impossibility…a “WIN-WIN” Situation.
Some of you may be thinking, “I don’t want to hold a mortgage and receive monthly payments. I want capital to purchase more property.” “My clients don’t want to be bothered with receiving monthly payments.” This is where our company enters the picture for the REAL ESTATE INVESTORS/ LANDLORDS, REALTOR, BUYERS, or SELLERS.
FRANJOMAS, Inc. can assist you in providing FREE ADVICE for structuring notes that have favorable terms that would make your note more marketable to investors that purchase Seller Financed Notes, lower the seasoning required so you may cash out as well as possibly lowering how much your note would be discounted. Depending on the terms, the mortgage or note only needs to be held for a few months to create what is known as “seasoning.” After seasoning has been established, you come to our company and say, “I have this note secured by Real Estate that I want to sell.” Our company will ask you a few questions about the note, analyze the note, offer you Market Price from a Note Buyer, and the deal can close as fast as 2-3 weeks.
If you are holding a Seller Financed Note, FRANJOMAS, Inc. will ensure that you receive top dollar for your Promissory Note by ensuring your Note is sold at current Market Value. Our company works with both Investors and Realtors providing FREE GUIDELINES for structuring Seller Financed Notes to create a “WIN-WIN” Situation. For INVESTORS, this is an invaluable resource, for creating a Promissory Note, that will make your Note highly marketable to Note Buyers, while at the same time, potentially minimizing the amount of discount to maximize you capital return that may be used to expand your Investment Portfolio, or meet other needs. For REALTORS, such information may aid him/ her in closing a deal that may have been impossible through conventional funding. Please click the button below for a FREE CONSULTATION for your Seller Financed Note.
If you know someone holding a Seller Financed Note; and he/ she wants to sell, our company offers a 20% commission based referral fee for any referred deals that closes without any additional responsibilities on your behalf. All commission based referral fees are guaranteed by a Fee Agreement entered into between you and FRANJOMAS, Inc. If we may be of assistance, please feel free to contact our company.
