Seller financing is when the seller becomes the bank on property they already own… they lend their equity to a prospective buyer/borrower. See this quick video: What is Seller Financing?
Read through the free download, “Seller Financing on Steroids“, and make sure you’re subscribed so you receive invitations to participate in our monthly “Property & Paper Live” zoom sessions. It’s a great way to get your questions answered. If you want to fast track your success in a private 1:1 setting, sign up for a Power Strategy Session.
Absolutely! Carrying paper DOES NOT mean you can’t walk away with cash if you have sufficient equity. Offering terms to a qualified buyer is a great way to close your deal at an attractive price.
Once you have a great real estate note, you can turn around and sell all or part of it for cash. This is sometimes called Simultaneous Closing (a ‘simo’).
If you bring me in to help you underwrite the buyer before you close, I can help you create a note I can pay more for.
The discounts on unseasoned notes is higher now than it used to be. That’s why the partial is such a great tool. The discount you take will be smaller. You get the cash you need now, without giving away the cash you’ll want later.
But be warned . . . the way you structure your transaction and put the paperwork together is absolutely critical!
The easiest way to get started investing in notes is to carry paper (become the bank) on property you already own.
If you want to buy other people’s notes, please review my Note Investor’s Checklist. If it seems we are a good fit, I’ll reach out when I have something that seems appropriate. Seriously consider setting up a Self-Directed IRA so that your note investments are tax free.
You can also check out other ideas under Resources.
Having your note serviced is a great way to protect the value of your note and make your life a whole lot easier. I recommend that you consider using one of the companies listed on my Resources page.
Well, I’d love to give it a shot! Email [email protected] with a brief summary of what you’ve got and what you’re looking for.
While I understand the generalities of how things work, I’m not a CPA and can’t give you specific tax advice on your particular situation. It’s very important that your accountant and I work together to make sure there are no unpleasant surprises when you decide to sell with or without an installment sale (IRC 453). For a little information on how capital gains work in California, read: Calculating Capital Gains
Note: If you have an investment property, you can defer capital gains without a 1031 exchange when you use a Title Holding Trust in a very specific way. Even sellers of high-end principal residences can have a huge capital gains liability, as the IRC 121 home owner’s exemption only goes up to $500,000. These home sellers can defer virtually all of the capital gains due by converting their home into an investment before ‘selling’ it.
If you’re a buyer with a down payment and decent credit (or not), then the world is at your fingertips! As a buyer, you should be working with someone who knows how to negotiate a possible seller financing deal for you!
If you’re a buyer that wants my help to find seller terms because you can’t or don’t want to get a bank loan, then you can check out your options here.
You can learn many strategies as a member of our monthly group coaching. It will share many secrets that the banks don’t want you to know about! You can pay market rates even if you’ve had a bankruptcy or foreclosure.
Here are a few of the benefits of seller financing for buyers: avoid the hassles of qualifying for bank financing (this is worth its weight in gold!), low or no points or origination fees, interest rates often as good or better than what you could get at a bank, quick closing, and the ability to customize the loan to your liking . . . it’s whatever you and the seller agree to. Make sure you take an option to buy your own note at a discount!
Of course! Offering terms (providing the financing, carrying paper, taking back a note) is a great tool for FSBOs who want the competitive edge. Seller financing will help you out-perform your competition.
There’s a lot I may be able to do to help you. Click here to see what I have to offer.
The answer is ‘yes.’ We just need to structure the transaction in a way that protects both buyer and seller. You will want to become familiar with the Title Holding Trust. Listen to an interesting audio from a past client here:
I wrote a blog post about this very topic. Click here to read it.
If you just don’t want to deal with it, then email me at [email protected]. You can sell me a ‘partial’ and I’ll do the dirty work for you. Just sit back and you’ll get the lion’s share of the payoff/proceeds when I’ve got the situation all cleaned up.
This is often a good strategy for people who just don’t want to be the one to foreclose on a friend or family member.