208-231-1944 zane@zanegraser.com

Is Seller-Financing a great investing strategy???
Seller-financing is one of the most creative ways to do deals in Real Estate. Seller-financing can be utilized in other sales as well including car sales, boat sales, etc. If the seller is willing to consider seller-financing, there is a possibility to make it happen.
Why would a seller want to consider seller-financing?
There are many creative ways to create true win/win situations in this scenario if you think about it on a much deeper level. Here are a few examples:
– If the purchase of the property is too high with the higher interest rates right now for the numbers to work, the buyer can take over the existing mortgage with the lower interest rate. It is better to pay 4% interest rate than 7-8% interest rate in today’s market. It is almost twice as more on the mortgage payment every month for the same loan amount!
– The seller can get a higher sales price by keeping the lower interest rate otherwise they will most likely have to sell at discount to make the numbers work.
– An investor can defer their taxes by utilizing seller-financing otherwise they will have to pay capital gains taxes. The capital gains tax is waived when the property is passed on their children at the time of their death.
– The seller can create monthly streams of income by utilizing seller-financing. If the seller owned several properties and sold them via seller-financing with a 30-year amortization schedule, the seller can earn a nice monthly passive income for 30 years.
– Buyers can acquire properties or properties with a lower down payment.
– Buyers benefit from the lower interest rate and they do not have to go through the hoops of getting approved by a bank.
– The seller gets a sizable down payment and collect monthly payments until the loan is paid off. If the buyer defaults on the loan, the seller keeps the property and they can repeat the process with a new buyer with another down payment and the monthly payment.
There are several creative ways and positive ways to utilize seller-financing that creates true win/win situations for everyone involved. Seller-financing is a great way to build wealth over time if done correctly.
***Be an Overcomer!***