Seller Financing - Benefiting Both Ends Of The Mortgage Industry

Solutions And Opportunity With Seller Financing

Whether you are a home buyer or a note broker one of the great aspects of this industry is seller financing. However, let’s cover first things first and explain how seller financing can benefit both a home buyer on one end of the equation and a note investor at the other end.

People that have less than perfect credit know the possibility of acquiring a home mortgage through conventional methods, mainly banks and other financial institutions, is not very good. In fact it is almost impossible, especially in the current economy. Becoming a home owner can seem like an unobtainable dream for many. Financial institutions, for the most part, will only do business with people that have good credit ratings. It all comes down to an individuals number, your credit score. If you’ve ever felt as if you have been reduced to a number, applying for a mortgage is one area where you ARE reduced a number.

Making the effort to improve you credit score is always a good idea and should be an important goal. However, purchasing a home will become a secondary goal and depending on your circumstances and your timeline for purchasing a home, this may not be an option. There is an another option which offers an alternative to doing business with financial institutions - seller financing.

Seller financing or owner will carry is common is probably the only solution for people no established or bad credit. This option is also available to people with no savings to speak of or jobs that are low paying. By seeking out real estate property owners that own multiple rental houses, you may be able work out a seller financing agreement. Very often, property owners with rental properties have grown weary of the rental business and may welcome an opportunity to still collect a monthly note but from someone that is buying rather than renting the property from them. It is a win-win situation for both parties. The person with bad credit or low paying job gets to own a home and the seller still has a cash flow stream coming in on a monthly basis.

On the other side of the equation in terms of seller financing, there is also opportunity for note investors and note brokers to potentially gain a new prospect. Individuals holding owner will carry mortgages many times would welcome the idea of freeing up the cash they have tied up in the property. Lump sum cash is a powerful motivator to many seller financing note holders, even at a discount. If you happen to be a note broker or a cash flow notes investor, these individuals offer an opportunity for you to make some money and add another income stream to your portfolio.

Seller financing is one of the exceptional features of the cash flow notes business as well as the home buying market by providing both opportunity and benefits to a wide variety of individuals. Home buying solutions for those with very little financial means and portfolio growth for note investors as well as commissions for note brokers.