Sometimes it can be awkward if you ask a seller to grant you owner
financing to invest in a home. When the seller carries a portion or the
whole purchase price less the buyer�s down payment, the seller gives
owner financing. The method of owner financing works in various kinds of
markets and is a time-tested method. There are many who want to be ahead
in the competition with other houses on the block. There are many who
want to sell their property at higher rates than the market value. There
are many who want to get a constant cash flow from their property after
they have sold their property.
There are many gains in owner financing. It allows the customer to sell
property in good and bad markets. There is an edge in the competition in
the markets regardless of the new home construction and increased
foreclosures. These cannot lead to an influence on the customer .Owner
financing attracts moir� buyers. Creative owner financing can lead to
less of price negotiations. The customer can have a consistent flow of
money after the property is sold. This is one of the main advantages of
creative owner financing. The person makes a transition from owner to
the investor when he uses owner financing in buying real estate. Owner
financing provides a competitive advantage. The other major benefit is
that it provides consistent flow of cash after the transaction. The
strategy is time tested and it allows you to get money from the property
you sold and then continue to gain from the transaction even after the
property is sold.
The customer can settle his or her own terms in owner financing; these
terms can include interest rates and terms of payment. Benefits for all
the different parties involved in the transaction can come from creative
owner financing. In real estate owner financing the investor of the
property pays the owner directly instead of through the bank, this way
the buyer and the seller involved in the transaction get cash flow
continuously. The seller of the property can get a significantly high
price for the property in creative owner financing. You can also get
high interest on the monthly payment. The methods used in creative owner
financing are ideal for many customers and often benefit everyone.
One of the drawbacks of creative owner financing is the buyer does not
pay the taxes, the water bill or other such payments. If this is the
case, the government can take hold of the property. The buyer will have
to pay the overdue bills. The buyer may get the property back but the
bills will have to be paid by him. These are only some of the features
of creative owner financing. There are other various features but they
are immaterial if these are looked into. The advantages and
disadvantages have been mentioned. Creative owner financing is an old
method to look at modern problems. This makes it unique.
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