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If you're an active realtor, you've probably come across situations where you
have a buyer who has decent credit and an adequate down-payment, but who still
does not qualify for a traditional bank loan (for whatever reason). You've
probably also run into home owners who have a decent amount of equity in their home,
but who are simply unwilling to carry back a large loan. In
other words, these owners want their money on closing, and who can blame them!
But, what's a real estate agent or broker to do? Walk away from the sale,
find another buyer?
One of things you can do is suggest using owner financing to complete
the home sale, and then arrange to have the home owner sell the resulting
mortgage or trust deed to a note buyer (or investor) at closing. In this
way, both the buyer and the seller get what they need, and you get a commission.
From a realtor's perspective, owner financing allows you the chance to
accommodate more buyers, sell your properties faster and close the sale more
quickly, and be more competitive in your field by providing solutions to
problems with credit and also by being able to negotiate more effectively.
You'll be able to sell properties you may not have been able to sell previously,
both residential and commercial, even non-conforming properties. You'll
always have a dependable source of financing without the rigid lending
requirements that banks often impose. And, of course, you'll make more
money by completing more sales.
For the buyer, owner financing may be the perfect answer to his/her financial
dilemma. Many buyers are unable to purchase a home simply because they do
not qualify for a bank loan. Often, they are a good credit risk, but just
don't fall within the strict lending requirements of most banks and lending
institutions. With owner financing, the lending requirements are much less
rigid and there are no debt to income ratios to worry about. Negotiation
is much more flexible because only the home owner and the buyer are involved,
with your supervision. Closing fees are much lower than with a traditional
bank loan, making the total cost of the loan lower. And delays can usually
be avoided because there is no need to wait for bank approval.
The seller also benefits because there is no longer a barrier to buying their
home. They'll attract a larger number of qualified buyers, obtain the best
price for their home, and be able to close on their home sale more quickly.
If they own a problem or non-conforming property, owner financing may be their
only viable option to selling the property. There is also a tax benefit in
being able to defer taxes on the gain into the future. And, best of all,
they can sell the resulting cash flow note at any time for a lump sum of cash.
Owner financing can be used to sell single family homes, multi-family homes,
commercial properties, land, mobile homes, or even businesses (with or without
real estate involved).
First Class Cash Flow Handlers offers several products to assist you and your
clients in selling a home or other property using owner financing.
Click here to
find out more about our products, such as "How To Sell Your Home Fast In Good Or
Bad Markets".
We will also purchase your clients cash flow notes on closing (depending on
the type of property), or at any other time. We offer many flexible sales
plans to accommodate any note holder's needs. To find out more about
selling a cash flow note, visit our
"Note Holders"
page.
Click here
to submit a cash flow note for sale.
If you are working with a buyer who is currently holding a
cash flow note of any type, selling that cash flow note may
allow the buyer to put down a larger down-payment, or even
purchase the property outright. It may be worth your time
to question potential buyers, especially those with little or no
money for a down-payment, about this possibility. Many
note holders are unaware of the fact that the note itself is an
asset which can be converted to cash.
If you have any questions about structuring a cash flow note for optimal
resale value, or about improving the quality of an existing note, please don't
hesitate to call or e-mail us. We will be happy to counsel you on creating
a cash flow note that your client will be able to sell for cash.
Additional Profit
Opportunities
First Class Cash Flow Handlers offers a
variety of products designed to help a home owner sell their
home using owner financing and help them keep that cash flow
note safe and secure. We offer an affiliate program which will
allow you to offer any or all of our products to your own
clients through your own website or office. You will
receive a commission of 50% of the purchase price for any
product sold through your site or office. And you'll also
be offering invaluable merchandise to your clients which could
literally save them thousands of dollars. There is no cost
or obligation to join our affiliate program. We will
provide any links necessary for you to add to your website. Please
click here for more information.
The Cash Flow Clarion is the
free e-zine published by First Class Cash Flow Handlers. It
explores current topics within the cash flow field and answers
frequently asked questions about cash flow notes and owner
financing. You can subscribe to The Cash Flow Clarion
and have current issues delivered directly to your e-mail
inbox. The subscription is free and we will rush you our
FREE report (Real
Estate Agents--Earn More Money Now!)
as a "thank you". Simply fill out the form below and click on
"Get More Info". To view archived issues,
click here.
Or you may view and subscribe to our
Cash Flow Clarion blog.
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