Question about seller financing - Posted by Mary Ashford

Posted by Bud Branstetter on February 02, 2001 at 03:15:14:


As long as you are going to sell why would you not refi and pull as much cash out as you can. Then wrap the note and provide owner financing at a premium price and interest rate. The money would be tax free.

Question about seller financing - Posted by Mary Ashford

Posted by Mary Ashford on February 01, 2001 at 18:26:26:

In a nutshell, I just found out today that I need to move in 3 months. I would rather not rent if I can avoid it, and so I’m looking at a house for sale with seller financing. I’m going to talk to the guy tomorrow but I’m curious … why would someone even offer seller financing? Why not just sell the house the conventional way? I assume he will want to charge me a higher interest rate in return for perhaps a lower down payment or lower monthly payments, or something like that? That’s the only thing I can think of that would make sense.

Both Good Answers … - Posted by Rick Wheat

Posted by Rick Wheat on February 02, 2001 at 07:06:29:

and you need to put them to memory, so that when a seller ask you, “Why should I finance this to you?”, you can explain the benefits of doing it.

I’ve found that this is my most effective method of negatiating an Owner Financed deal (about 90% of what I do). I’m able to show them all the benefits of selling to me this way, and when I’m through, any other method sounds like a bad idea.


Rick Wheat

Re: I am glad you asked that question. - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on February 01, 2001 at 18:47:23:

Consider this:

I am an old coot about ready to retire. I have a house to sell that is paid off “free and clear”. I do not necessarily need the money from this sale right now. I will just probably put in in “the bank”. My return will be 5 or 6% interest tops from the bank.

What if I just loan the money to you at lets say 8% interest. My investment will then be making more money, and I will know all about the security (the house). I know that if you do not pay that I can take the house back and sell it again. This is a much better deal for me than just 5% from the bank.

I can give you a good deal, if I do not need my cash right now. Look for a seller who does not need the cash right now. Then smile…

Re: Question about seller financing - Posted by phil fernandez

Posted by phil fernandez on February 01, 2001 at 18:43:53:

There are many reasons why a seller would want to offer owner financing.

1./ He might want to spread out his tax liability rather than paying taxes on a lump sum he would receive through a conventional sale.

2./ He may want to create a cashflow income stream for himself.

3./ He may not need all of the cash.

4./ By offering owner financing, the seller will expand his market for a faster sale.

5./ By offering owner financing, the seller will probably get a higher price.

6./ By owner financing he probably will get a higher interest rate on his money than if he got all cash from the sale and put it in a CD.

Those are the first 6 that I could think of quickly. There are many other reasons also.