Owner Financing

Receive a down payment up front, and the remainder of your equity + interest in the form of monthly payments.

With owner financing, the buyer pays the owner a down payment, and then makes monthly payments to the owner over the agreed upon time period. The Term could be 5, 10, 20, or 30 years, and could include a balloon payment at the end, or not.

If you have equity in your house (where the house is worth more than you owe), then the monthly payments + interest provide an income stream going into the future for the seller. It is analagous to having your money in the Bank earning interest. However, you can make 3% or 4% interest on you money, rather than 0.2% in today's Savings accounts. The total cash you recieve in the end is much more than if you had recieved all cash at the time if sale. Usually there is no Realtor comission.

If choosing this method, the seller needs to be sure that they want to recieve a monthly Income, rather than all cash up front. You will receive monthly payments until the end of the agreed upon term of the agreement. But, if you need the money sooner for any reason, you cannot get it easily. This is similar to having the equity tied up in your own house.

The legal documents used are a Promissory Note and either a Land Contract or a Trust Deed

Complete our Seller Questionnaire and we can help you!