6 Owner Financing Tips for Selling | How To Be The Bank When Selling

If selling the traditional way with a realtor isn’t an option for you due to low equity, short timeline, or you’d prefer to receive monthly payments and not be hit with painful capital gains tax when selling for a profit. Owner financing would be a perfect fit for you and Justin has 6 tips to help you structure the best deal for both parties.

What is up everybody i’m justin and i’m making this video for all the sellers who are thinking of selling their home using owner financing in this video you’re going to get six really good owner financing tips if you’re planning on selling in latonya georgia let’s get into it as we all know there’s many different ways you can sell your home one of those options

Are listing your home with the real estate agent on the market and see what other buyers are willing to pay for or you could work with a real estate buying company like us at bright life estates and get a fair cash offer but there’s also another option you got which is owner financing which we like to call being the bank because you’re going to be collecting payments

From the buyer over x amount of time owner financing is a very valuable but an underused strategy to help you sell your house it’s where you offer the buyer terms where they give you payments over a certain amount of time just like a mortgage but enough of this talking let’s get into the six tips owner financing tip number one don’t focus solely on the purchase price

Now don’t get me wrong it’s definitely important to get fair market value for your property or higher but don’t focus so much on the price that you forget the other aspect when it comes to buying or selling real estate which is the terms make sure that you’re getting the right terms to benefit you as well owner financing tip number two think about the timeline that

You would like to be paid in now sometimes banks can offer you 5 10 15 even 30 year mortgages but for your situation would you like to accept payments out that long on the other hand as well most times buyers don’t want to pay you 25 years down the road so make sure you guys find a timeline that works for both of you okay owner financing tip number three which is

Terms by far this is one of the most important aspects of a deal but it’s also one of the most overlooked aspects as well make sure that you focus on the terms and like i said earlier not just on the price so some things that might be included in the terms may be how much down payment that you require if there’s any prepayment penalties if there’s any late payment

Penalties and most importantly what type of interest is reflected on the loan that you’re giving owner financing tip number four which is protect yourself even if you enter into agreement with someone who is completely trustworthy something might go wrong and it may not be their fault or yours it’s just something that you can’t control so make sure that you write

Out an agreement that’s giving you protection for example you can make sure and require that not only yourself but also the buyer has their own insurance that way you’re covered in various different scenarios and also consider including in clause that retains your ownership of the property in your name until the loan is fully satisfied owner financing tip number

Five which is build contingencies now your owner financing agreement may be built around the ideal plan of what would happen which if it happens great perfect you don’t have to worry about it but let’s say something happens is outside of your control this is where having built-in contingencies allows you to make the best decisions for example what if the buyer no

Longer wants the house or what if the buyer just can’t pay what if the buyer wants to pay early or how about this one what if the buyer wants to use the property in a different way than expected or if your circumstances change and you no longer want to sell or let’s say you need to sell even faster make sure you and the buyer agree to different contingencies ahead

Of time so when the arrangements come it’ll go so much smoother alright last but not least owner financing tip number six which is get an attorney no matter how you ultimately structure your owner financing deal you don’t want to have a poorly worded agreement this can hurt you in the long run so make sure you get an attorney who can help i’m justin with bright

Life estates thanks for watching this video hey if it was helpful to you at all make sure you click the like button subscribe to our channel and hit the bell for notifications we’ll be posting videos like these quite often thanks and i’ll see you around

Transcribed from video
6 Owner Financing Tips for Selling | How To Be The Bank When Selling By Bright Life Estates