What is seller financing

Quick video on the basics of seller financing.

Uh so what excel financing seller financing is just basically a legal binding contract between you a the seller and b somebody the buyer so it’s a legal binding contract that is written up it basically says the purchase price the interest rate the term meaning how long they’re going to make that payment for and then of course the monthly payment that they’ll

Pay you so anything can be seller finance uh car properties businesses and it happens a lot in the world that a lot of people don’t realize but on the way we structure our deals for seller finance so we’ll buy a property and we’ll sell a finance it to somebody that’s basically uh locked out traditionally locked out because they have poor credit or something in

Their payment history stops them from purchasing our property so with the purchase of a seller finance deal i have laid out the terms the interest rate the monthly payment me as an investor is good because i get to get what we call mailbox money residual money coming in monthly however as the buyer they get the opportunity to have a piece of the american dream own

A piece of a home that they would traditionally be locked out of right now with a self finance deal they do go on title but you also retain ownership as just like if you own your own home or car there’s a lien holder on that so me now as being the bank get that residual income however if they default i can take back that property and any upgrades or anything they

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Did to that property i can actually resell their property at a higher price a good thing another good thing is as a seller finance deal as an investor you can write that off as depreciation any repairs you put into that property right however we all know that real estate is appreciated so as a real estate investor i get to write it off as a depreciation even though

The house is appreciated so i actually get to save money throughout the year that i get from that person and it’s not a lieutenant or the rent to own is literally they go on property i’m going on that property title however i am there as a lien holder in case they default so that secures my interest in my seller finance deals so what you want to do is basically

Learn how to structure self-finance deals for you to make passive degeneration wealth right because most seller finance deal has a term you know five years 10 years 15 30 years just think if something happens to you in between that period your family will have that residual mailbox money coming in so that’s why i like selling finance deals i don’t have to worry

About leaky faucets and toilets of somebody renting out the place or destroying the place when they move out you know with seller finance deals these people have emotional equity because it is their home nines out of ten they’re going to take care of that property they’re going to force the appreciation of that property and you as the bank as always secured so

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I hope that um gives you a basic understanding of what a seller finance deal is again it’s just basically a binding contract of a note saying i owe you

Transcribed from video
What is seller financing By Sabur DeMary