Why invest in Cash-flows? What to look for?

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Seller-financing can be something that people have veered away from in the past. At first glance, it could be seen as not a very glamorous topic. However, I believe that seller-fnancing is a tool that can be used to close deals faster, sell hard-to-place properties and to finance borrowers that may not qualify for that traditional bank loan.

The market for seller-financing has matured considerably over the years. Today's market demands a greater sophistication as the industry has become more standardized, and when a market goes through a change like this their will be proffessionals to fill the void. Investors of seller-financed loans (aka real estate paper) now have measurable statistics on industry trends and sophisticated financing models. This is great news for the individual noteholder and for those considering selling a property and providing financing, because it offers protection of your investment in the loan by building a viable exit strategy. Whether you decide to sell with an investor like myself for a lump sum at market value or collect it to maturity over years this is a great evolution in the seller-financing market.

One thing to look for when developing your seller-financed loan is do your homework! The most important thing to remember for someone thinking about seller financing is that it is in his/hers best interest to:

-Qualify and gain a comfort level with the buyer prior to the sale. Collect as much information as you can so that you can feel comfortable about the future payments made on the loan.

-Legally structure the note, provide flexibility, provide the most protection, keep in mind that you want to be able to have a sellable note so that you may have that option in the future in the event circumstances change.

-develop a system and keep a record of your payments.

-comply with all legal obligations. (fairly easy to understand just do homework.)

Seller financing a property for quick resale can be very useful in financing "sub-standard" (those that have fairly aggressive lender under-writing and affordable interest rates)type real estate. A lot of rehabbers tend to seller-finance so that they can flip and pocket the difference in their property much quicker.

A great aspect of seller-financing is that closing costs in seller-financed properties can be a lot cheaper than that of a conventionally financed property. It can be less of a hassle and you will close much faster, shortening your closing time 6-8 weeks shorter then that of conventional loans.

With the rising interest rates Seller-financing has become more and more the look of the future in real estate. People are beginning to see much more possibilities in the seller-financing arena.

To cash out of that pesky loan you are recieving payments on you can reach Shahab Ghafari to get the job done for you so that you can enjoy having the money in your pocket now and invest in yourself again. If you have some money in the bank and are looking to make a good return over time (15% up) with the secuirty of real estate I may be able to get you that as well.

Shahab Ghafari
510-478-5728
[email protected]