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𝐎𝐖𝐍𝐄𝐑 𝐅𝐈𝐍𝐀𝐍𝐂𝐈𝐍𝐆
𝐑𝐞𝐚𝐥 𝐄𝐬𝐭𝐚𝐭𝐞 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐚𝐧𝐝 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐑𝐞𝐢𝐧𝐯𝐞𝐧𝐭𝐞𝐝
𝑺𝒊𝒏𝒈𝒍𝒆 𝒂𝒏𝒅 𝑴𝒖𝒍𝒕𝒊-𝑭𝒂𝒎𝒊𝒍𝒚 𝒉𝒐𝒎𝒆𝒔, 𝑪𝒐𝒎𝒎𝒆𝒓𝒄𝒊𝒂𝒍 𝒑𝒓𝒐𝒑𝒆𝒓𝒕𝒊𝒆𝒔, 𝑳𝒐𝒏𝒈 𝒂𝒏𝒅 𝑺𝒉𝒐𝒓𝒕 𝒕𝒆𝒓𝒎 𝒓𝒆𝒏𝒕𝒂𝒍𝒔, 𝑻𝒊𝒎𝒃𝒆𝒓 𝑷𝒂𝒓𝒄𝒆𝒍𝒔, 𝑭𝒂𝒓𝒎𝒔, 𝒂𝒏𝒚 𝒑𝒓𝒐𝒑𝒆𝒓𝒕𝒚 𝒄𝒂𝒏 𝒃𝒆 𝑶𝒘𝒏𝒆𝒓 𝑭𝒊𝒏𝒂𝒏𝒄𝒆𝒅.
𝑰𝒏 𝒐𝒘𝒏𝒆𝒓 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒏𝒈, 𝒂𝒍𝒔𝒐 𝒌𝒏𝒐𝒘𝒏 𝒂𝒔 𝒔𝒆𝒍𝒍𝒆𝒓 𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒏𝒈, 𝒕𝒉𝒆 𝒐𝒘𝒏𝒆𝒓 𝒂𝒏𝒅 𝒃𝒖𝒚𝒆𝒓 𝒂𝒈𝒓𝒆𝒆 𝒐𝒏 𝒕𝒉𝒆 𝒑𝒖𝒓𝒄𝒉𝒂𝒔𝒆 𝒕𝒆𝒓𝒎𝒔. 𝑨𝒇𝒕𝒆𝒓 𝒃𝒐𝒕𝒉 𝒑𝒂𝒓𝒕𝒊𝒆𝒔 𝒔𝒊𝒈𝒏 𝒕𝒉𝒆 𝒑𝒂𝒑𝒆𝒓𝒘𝒐𝒓𝒌, 𝒕𝒉𝒆 𝒃𝒖𝒚𝒆𝒓 𝒄𝒂𝒏 𝒎𝒐𝒗𝒆 𝒊𝒏𝒕𝒐 𝒕𝒉𝒆 𝒉𝒐𝒖𝒔𝒆 𝒂𝒏𝒅 𝒕𝒂𝒌𝒆 𝒑𝒐𝒔𝒔𝒆𝒔𝒔𝒊𝒐𝒏 𝒐𝒇 𝒕𝒉𝒆 𝒑𝒓𝒐𝒑𝒆𝒓𝒕𝒚.
𝐄𝐚𝐜𝐡 𝐦𝐨𝐧𝐭𝐡, 𝐭𝐡𝐞 𝐛𝐮𝐲𝐞𝐫 𝐦𝐚𝐤𝐞𝐬 𝐚 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐭𝐨 𝐭𝐡𝐞 𝐨𝐰𝐧𝐞𝐫.𝐓𝐇𝐄 𝐎𝐖𝐍𝐄𝐑 𝐁𝐄𝐂𝐎𝐌𝐄𝐒 𝐓𝐇𝐄 𝐁𝐀𝐍𝐊.
𝙊𝙬𝙣𝙚𝙧 𝙁𝙞𝙣𝙖𝙣𝙘𝙞𝙣𝙜 𝙘𝙤𝙣𝙩𝙧𝙖𝙘𝙩𝙨 𝙘𝙖𝙣 𝙗𝙚 𝙨𝙚𝙧𝙫𝙞𝙘𝙚𝙙 𝙗𝙮 𝙣𝙤𝙩𝙚 𝙨𝙚𝙧𝙫𝙞𝙣𝙜 𝙘𝙤𝙢𝙥𝙖𝙣𝙮. 𝙏𝙝𝙚 𝙨𝙚𝙧𝙫𝙞𝙘𝙞𝙣𝙜 𝙘𝙤𝙢𝙥𝙖𝙣𝙮 𝙬𝙞𝙡𝙡 𝙨𝙚𝙣𝙙 𝙩𝙝𝙚 𝙥𝙖𝙮𝙢𝙚𝙣𝙩 𝙞𝙣𝙛𝙤 𝙩𝙤 𝙖𝙡𝙡 𝙘𝙧𝙚𝙙𝙞𝙩 𝙗𝙪𝙧𝙚𝙖𝙪𝙨 𝙩𝙤 𝙝𝙚𝙡𝙥 𝙞𝙣𝙘𝙧𝙚𝙖𝙨𝙚 𝙩𝙝𝙚 𝙨𝙚𝙡𝙡𝙚𝙧𝙨 𝙘𝙧𝙚𝙙𝙞𝙩 𝙨𝙘𝙤𝙧𝙚 𝙨𝙤 𝙩𝙝𝙚 𝙨𝙚𝙡𝙡𝙚𝙧 𝙘𝙖𝙣 𝙜𝙚𝙩 𝙖 𝙡𝙤𝙖𝙣 𝙛𝙧𝙤𝙢 𝙖 𝙗𝙖𝙣𝙠 𝙩𝙤 𝙥𝙧𝙤𝙫𝙚 𝙝𝙤𝙢𝙚 𝙞𝙨 𝙣𝙤 𝙡𝙤𝙣𝙜𝙚𝙧 𝙩𝙝𝙚𝙞𝙧 𝙙𝙚𝙗𝙩 .
Example:
A buyer might be very interested in purchasing a property, but the seller won't budge from a $350,000 asking price. The buyer is willing to pay that amount and can put 20% down—$70,000 that they gained from the sale of their prior home. They would have to finance $280,000, but they can only get approved for a traditional mortgage in the amount of $250,000.
The seller might agree to loan them the $30,000 to make up the difference, or they might agree to finance the entire $280,000. In either case, the buyer would pay the seller monthly, principal plus interest on the loan. These loans are somewhat common and very useful in times of recession when financial tightening slows down lending.
Seller pros:
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Higher return on your sale with the right buyer
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Potentially faster sale
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Steady income stream
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Simplicity of agreements
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Can be used whether home is owned free and clear or not (HyBird).
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Easy to vet the buyer and their financial situation
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No Risk of loss to seller via buyer, if buyer defaults Deed converts back to seller.
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Tax benefits
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leeway to sell a property as-is, without needing to make repairs.
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No RE agent commissions
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Cost less then selling the traditional method
Owner Carry:
The current property owner finances part or all of the sale, usually through a second mortgage, although sometimes the owner will carry the entire loan.
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