Many homeowners never consider directly financing the sale of their home because they are not aware of the benefits or they don’t fully understand how to create a mortgage note. Seller financing is very powerful when the market is slow or when the market is flooded with similar houses.
Three of the main benefits of seller financing are:

#1 MORE BUYERS

#2 MORE MONEY

#3 LONG-TERM PROFIT

Sellers can increase their pool of buyers by offering owner financing and listing the house as “OWC” – Owner Will Carry. This will make the house stand out and attract MORE BUYERS. In today’s market there are millions of people who cannot qualify for traditional bank financing because of their credit situation. Many of these “credit-challenged” individuals are often frustrated with the limitations of apartment living or being renters, and as a result are willing to pay MORE MONEY just for a chance to get seller financing and improve their quality of life. Seller financing allows the homeowner to sell at or above the desired price even in a saturated market. By structuring the deal to collect interest, overtime this can add up to ten of thousands of dollars in additional income. If the seller hold onto their note this will result in LONG-TERM PROFIT.

A seller-financed real estate sale is simply a real estate transaction where the owner of the property (Seller) acts as the “bank” or lending institution. The Seller sets the sales price, determines and accepts a down payment, and then finances the remaining balance. Once the Seller and the Buyer agree on the terms, such as interest rate and total term, they can use an attorney to create the mortgage document and close the deal. From that point on the Buyer sends the Seller monthly payments for the house he/she has just purchased.