6 WAYS TO WIN SELLER-FINANCING
Are you looking to maximize your time and money on the sale of a property? Seller-financing could be the answer.
What is seller financing? This is a common question asked across real estate forums daily. Seller financing put simply, is when the seller of the property acts as the bank and finances a real estate transaction.
What are the pros for a seller to use seller financing? Next time you find a property where the seller owns the property outright, use these 6 advantages to educate them on benefits of seller-financing.
1) Higher ROI: A seller using seller financing can get a much higher interest rate (or return on their money) than they would investing their money in a typical IRA or savings account.
2) Tax Savings: Selling your property over a period of time as opposed to one lump sum payment can result in huge tax savings. For example if you own a property free and clear and sell that property for $1,000,000 you could have to pay up to 25% on taxes (and that’s before paying a recapture of depreciation tax). But by spreading out the sale of your property over time you can minimize the amount of taxes you pay.
3) Ability to sell quickly: Let’s face it, waiting for typical lender financing, and banks can cause huge delays in the selling process. Seller financing allows you to expedite the sale of a property. Selling financing transactions allow you to negotiate your own terms and can happen in as little as 3 weeks.
4) Recurring Cash Flow: Seller financing allows sellers to generate passive monthly cash flow.
5) No Repair Costs: A property can be sold “as is” and does not have to be repaired to meet typical lending standards.
6) Secured Asset: The purchase price is collateralized by the property. If a buyer (for any reason) stops making payments the seller can regain ownership of the property.
Call or email SNA Capital today to find out more about seller-financing.
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