SELL YOUR PROPERTY - ON YOUR TERMS
Owner financing for investment properties
- Consistent Cash Flow: Receive predictable monthly principal and interest payments
- No Property Expenses: Eliminate costs like upkeep, taxes, and insurance.
- Tax Advantages: Defer capital gains tax for more money in your pocket.
- Flexible Exit Strategies: Easily sell or transfer your seller finance note.
SELL YOUR PROPERTY - ON YOUR TERMS
Owner Financing For investment properties
- Consistent Cash Flow: Receive predictable monthly principal and interest payments
- No Property Expenses: Eliminate costs like upkeep, taxes, and insurance.
- Tax Advantages: Defer capital gains tax for more money in your pocket.
- Flexible Exit Strategies: Easily sell or transfer your seller finance note.
How Seller Financing works
What is seller financing?
Seller financing is a way of selling a property that cuts out traditional lenders (banks). The buyer typically makes a down payment, then pays off the remaining balance to the seller over time, with interest. You may have also heard it called owner financing, selling on a contract, or carrying papers.
There are two common types of seller financing
Contract For Deed
Trust Indenture
There are two common types of seller financing
Contract For Deed
A contract for deed (land contract or installment sale contract) is a type of real estate sales agreement where the seller retains title to the property until the buyer has made all payments. The buyer takes possession of the property and makes regular payments to the seller, but the deed is only transferred into the buyer’s name once the full purchase price is paid off.
Trust Indenture
Seller financing that uses a trust indenture puts the deed in the buyer’s name at closing. The trust indenture is a filed contract that states the terms of the loan, including the interest rate, repayment schedule, and what happens if buyer defaults.
In Seller-financed transactions, an Escrow CompanyA neutral third party company that collects and distributes funds, and files documents as directed by the contracts they are provided. handles the collection of monthly payments from the buyer. These payments usually include the amount owed to the seller, as well as prorated monthly property taxes and insurance. The escrow company distributes the funds to the seller and pays the tax and insurance bills when they come due.
Having a neutral party to disperse the funds is crucial. By managing the payments and following the terms of the contract exactly, the escrow company ensures that the seller and buyer don’t need to communicate directly after closing, making the process smoother and more secure for both parties.
To ensure the buyer keeps up to date with tax and insurance payments, most contracts require the buyer to pay prorated tax and insurance payments each month. the escrow company collects the monthly payments and pays the bills when they come due.
Both contract for deeds and trust indentures have terms that penalize lapses in tax and insurance payments with default.
A balloon payment is a large final payment due on a loan before the loan term ends. In seller financing, this means the buyer pays off the remaining loan balance earlier than the full Amortization periodThe length of time it would take to pay off the loan in full through regular payments.
Benefits:
Sellers: earn more interest over a longer period, but still have the option to receive the remaining loan balance sooner when the balloon payment is made
Buyers: Benefit from lower monthly payments and have time to find new financing options before the balloon payment is due.
Example: If the amount financed is $500,000 at 6% interest, amortized over 30 years, but with a balloon payment due in 10 years, the buyer’s monthly payments stay manageable while ensuring the loan is paid off within 10 years.
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How our service works
Find your Match
We connect you with a top-tier real estate agent who specializes in seller financing.
Streamline the Process
Our expert agents guide you through the entire seller financing process.
Close with confidence
Close with confidence, knowing our agents and proven framework have handled every detail of your seller financing transaction.
You Have a buyer. You have a seller.
We put it all together.
» 2.5% facilitation fee,
» An option of $0 due at closing
We facilitate the entire transaction – providing the terms, contracts, and contacts to get your deal done right.
Seller Finance-Driven Listings
» 2.5% Listing Fee,
» An option of $0 due at closing
Our network of seller finance-driven listing agents understand the nuances of selling investment properties with owner-financing. Selling for more, maximizing income, and presenting properties to qualified buyers.