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.