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"Want More For Your Property?"

Oct 11, 2007
If you are like most people selling a property, than you want to get as much money for it as possible. Regardless of whether you are planning to sell it yourself or to work with a real estate professional, seller take-back financing is a sure-fire strategy that can help you sell your property more quickly for top dollar. Seller take-back financing has long been an extremely popular technique with knowledgeable sellers of real estate because it has proven to be an effective way to increase profits. Aside from enabling a seller to receive a higher sale price, seller take-back financing, when structured properly, is usually very safe, easy and extremely profitable.

By way of quick review, a seller take-back loan is created when the seller of a property agrees to lend the buyer a certain amount of money toward the property purchase price. In doing so, the seller, takes back the amount in the form of a note. This seller take-back note is secured by property. In turn, the buyer agrees to repay the seller the amount of the loan, including interest, over a period of time. Lets take a quick look at this technique to understand how it helps both buyer and seller.

In this example, Mr. and Mrs. Green put their house on the market with an asking price of $250,000; a price that is totally appropriate for existing market conditions. Mr. and Mrs. Brown, in the market for a home, see it and fall in love with it. As a result, the Brown's make the Green's an offer of $225,000. The Brown's also indicate that they will only be able to make a maximum down of 20% of their offering price (or $45,000). Since the Green's have an interested qualified buyer capable of making a substantial down payment, they don't want to lose the sale. But they also don't want to take less than their asking price. To help close the deal quickly, the Green's make the Brown's a counter offer involving a seller take-back loan. Instead of dropping the sales price, the Green's propose to assist Mr. and Mrs. Brown in completing the purchase by giving them a seller take-back loan of $205,000, which is the difference between the $250,000 asking price less the Brown's down payment of $45,000. The Green's outline favorable terms, which include a fair and competitive interest rate, resulting in easy-to-make monthly payments and a comfortable payout period. The Brown's, realizing an opportunity to get their dream house, accept the proposal and the deal closes quickly.

As you can see from this example, both the buyer and seller derived substantial benefits from using the seller take-back financing technique. And the best deal always benefits all of the parties involved. In this case, the buyers were able to purchase the house without having to increase their down payment. They also greatly benefited, by working out favorable repayment terms on the seller take-back loan that fit their repayment budget and timetable.

The sellers benefited by selling the house more quickly and by receiving the asking price, which is more than they might have received in a traditional transaction. In addition, the seller received additional benefits by creating a steady monthly cash flow in the amount of the payments. As an added benefit, the seller will get many additional profits above the selling price in the form of interest earned on the seller take-back loan, and always has the option of selling the loan at any time for a lump sum of cash.

In summary, using seller take-back financing techniques not only helps sell a property for more, but it also benefits both parties in ways that help close the deal quickly. If you are planning to sell a property and would like to learn more about how you can use seller take-back financing most effectively, than I would be glad to help in way that I can.
About the Author
Robert Milne is an investor and deals in mortgage notes, business notes, structured settlements, lotteries/annuities, as well as senior life settlements.
Robert Milne provides noteholders an opportunity to get quick cash for their notes and other cash flows. Get your free consultation and free note appraisal today by visiting my website at http://www.cash-4-notes.info
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