Seller financing can save you a lot of headaches, as well as a lot of money.
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Perhaps you’ve been curious about what benefits there are to seller financing. Today, I’ll be discussing what those benefits are.
1. It can lead to a faster closing. Typically on a single-family home, you’re looking at a 30- to 60-day closing, whereas on multi-family and commercial properties, you’re looking at possibly up to 120 days. With seller financing, it could be as little as 10 days to close.
2. There is no appraisal contingency. On a traditional bank loan, if a property doesn’t appraise what it’s selling for, and it’s down, you might possibly see a cancellation. With seller financing, you usually don’t even need an appraisal.
3. A seller continues to get monthly cash flow without the maintenance issues or tenant headaches you might see otherwise.
4. There are no mandatory repairs. Sometimes with a traditional loan, banks may require repairs, which can be a headache. This is not the case with seller financing.
5. It may also be great for estate planning. In case you pass away early or unexpectedly, your property is secured by a promissory note, so the heirs on your property will continue to get the monthly benefit.
6. The seller will be named on the insurance policy tied to the property.
7. There isn’t a need for termite tenting; this is another expense you can avoid with seller financing.
Thanks again for visiting my blog. I’m actually in major acquisition mode right now with my partners, and we are looking for multiple properties—multi-units, commercial, and single-family—using seller financing.
If you’re one of those looking to sell, please call us first. If you’re thinking about doing it, please check with your tax and legal professionals, as that’s not my department. For any other questions, please feel free to call me.
Perhaps you’ve been curious about what benefits there are to seller financing. Today, I’ll be discussing what those benefits are.
1. It can lead to a faster closing. Typically on a single-family home, you’re looking at a 30- to 60-day closing, whereas on multi-family and commercial properties, you’re looking at possibly up to 120 days. With seller financing, it could be as little as 10 days to close.
2. There is no appraisal contingency. On a traditional bank loan, if a property doesn’t appraise what it’s selling for, and it’s down, you might possibly see a cancellation. With seller financing, you usually don’t even need an appraisal.
3. A seller continues to get monthly cash flow without the maintenance issues or tenant headaches you might see otherwise.
With seller financing, you usually don’t even need an appraisal.
4. There are no mandatory repairs. Sometimes with a traditional loan, banks may require repairs, which can be a headache. This is not the case with seller financing.
5. It may also be great for estate planning. In case you pass away early or unexpectedly, your property is secured by a promissory note, so the heirs on your property will continue to get the monthly benefit.
6. The seller will be named on the insurance policy tied to the property.
7. There isn’t a need for termite tenting; this is another expense you can avoid with seller financing.
Thanks again for visiting my blog. I’m actually in major acquisition mode right now with my partners, and we are looking for multiple properties—multi-units, commercial, and single-family—using seller financing.
If you’re one of those looking to sell, please call us first. If you’re thinking about doing it, please check with your tax and legal professionals, as that’s not my department. For any other questions, please feel free to call me.
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