Owner financing is a great tool, which, when used properly, offers benefits to both buyer and seller. Like all tools it can also cause damage to buyers and sellers. The purpose of this article is to provide an introduction to the risks and rewards of seller financing plus some ideas for creative ways to make it successful for both parties.
When home sales slow down seller financing as a sales tool always becomes more popular. Problems occur when desperate sellers, driven by the need to sell immediately, get talked into providing owner financing without really understanding the risks or the process. They frequently bypasses some of the steps in the normal home sales process, especially those which protect the seller. When problems arise, and they ALWAYS do, naive sellers don’t know what to do and may not have the paperwork needed to protect their position.
I know people who can hardly wait for the downturn to really take hold because they know the boom in owner financing will create opportunities for them to profit. You do NOT want to find yourself unprepared for dealing with them! If you educate yourself about owner financing before you negotiate the deal and create the documents, you will be in a position of strength. When real money is on the table, professional advice should always be obtained.
Seller financing doesn’t have to be a win/loose situation. Your hourly pay rate for taking the time to educate yourself about owner financing ahead of time will be very high.
If you would like more information on how to CONSTRUCT a owner finance transaction property for yourself or your seller (for Realtors), then call our office and we can let you know what is involved. Roddy is collaborating Scott Horne (Texas attorney) on providing you guys with a all-encompassing Owner Finance blueprint that will answer all your questions.
Owner Financing is going to be the vehicle of choice for many sellers and Realtors for the next 5 years. Get educated on the subject.
George Roddy, Jr.
Owner/CEO of Roddy Real Estate Investing Academy
article provided by owner-financing.com