An Example Of Seller Financing: Years Ago I Bought A Rental Property, And Nine Months Later Sold It For 15 More, Without Fixing Or Improving A Thing. The Easy Terms Are What Sold It. I Took 1000 Down, And I Still Get A Payment Every Month, With 9 Interest.Four Reasons To Offer Seller Financing 1. To Get A Higher Price. As You Can See From The Example Above, Buyers Pay For Easy Terms. From The Buyers Perspective, He Gets A Place For Almost Nothing, That The Renters Will Pay For. He Comes Out Okay Even If He Later Sold It For Less Than He Bought It For. 2. To Get A Decent Return On Your Money. The 9 I'm Getting Is Nice, But The True Return Was Much Higher, Since I Also Sold The Property For 15 More Than I Paid, And I Get 9 On The Entire Balance. In Fact, For A Great Return Without The Headaches Of Being A Landlord, You Can Simply Buy Low For Cash And Sell High With Terms. 3. To Sell Faster. Anytime You Expand The Potential Market For A Property, You Increase The Odds Of Selling It Fast. Selling With Easy Terms Definitely Invites More Buyers To Look At Your Real Estate. 4. To Sell Difficult Properties. If You Have A Property That Is Difficult To Finance Conventionally, Offering Seller Financing May Be The Only Way Get It Sold, And At A Fair Price.Of Course The Ways You Can Sell Are Limited By Mortgages And Other Loans. I Owned The Rental Free And Clear, Which Meant I Could Sell It Any Way I Wanted. There Are Other Ways To Use Seller Financing Though, Even If You Owe On The Property. There Are Ways To Do This Safely Too. Those Topics Are For Another Article.
