Why owner financing is & has been around

Like stated in the last post, owner financing is essentially where the homeowner becomes the lender. I know what you’re thinking. You’re asking yourself why in the world would a seller do that? It would obviously have to come with a ton of benefits rather than just selling outright! You want to know just some of the benefits? Here they are:

  • If the property is vacant or has been on the market too long, the seller can get immediate cash flow from a buyer.
  • Accomplish monthly principal balance reduction (additional profit).
  • Eliminate debt service.
  • Eliminate utilities cost because the buyer pays for those.
  • Eliminate any additional repair & maintenance expense (no tenants and no calls about toilet issues because this is not a lease).
  • One of the biggest benefits is that you can get a buyer to pay your full asking price and enjoy life without having to worry about the property. That means no paying real estate agent fees and all the other fees associated with listing your house with an agent or broker. Wouldn’t you like to keep all your money?

The seller is getting absolved of:

  • Payments
  • Taxes
  • Repairs
  • Maintenance
  • Insurance
  • Future cost increases like taxes or insurance going up.
  • You won’t have to deal with leaky toilets or roofs along with calls in the middle of the night because the buyer takes care of all of that.

Not every seller is in the situation where owner financing would be the best option but a lot of the times they can get a lot more money out of their house than selling the traditional way. If you’re interested in selling your house with owner financing or have questions feel free to email beahomeownertoday@gmail.com.

If you’re a landlord or have thought about being one, then you’ve most likely heard of the nightmare stories that tenants can cause. With owner financing, you don’t have to worry about any of that because the buyer is responsible for the repairs & maintenance and is also required to take a premium insurance policy on the home listing the seller as the one who would receive the insurance money in case of damage or vandalism. The seller needs to be aware of all the ways he or she can protect themselves from the beginning. That’s where investors like us come in, to help the sellers not only protect themselves but creating a win/win for both buyer & seller. Now what a lot of people are always interested in will be the next post…..the buyers.



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