Benefits To Clients if they consider Selling with Seller Financing

Agents, this video provides a few benefits to help guide your Client as they consider Seller Financing as an Option to Sell their Home. 

Seller Financing has been around for a very long time. As Realtors we have been taught this by using the TREC One to Four Contract in Line 3 B - Seller Financing options when purchasing a property.

We also see this Term on the HUD on Line 203 and 503, giving seller and buyer opportunity to state the Terms of the Seller Financing payments and notes.

Texas Property Code 5.016 also has language prepared to know how to adequately sell a property with Seller Financing terms between a Seller and a Buyer, with all important disclosure points.

Here are some Benefits to seller financing that you can present to your seller:

• The seller can sell near their sales price if they are willing to accept a cash down payment and payments over time (also known as Terms)

• With Seller Financing, the Seller can minimize capital gains taxes and spread-out depreciation recapture over time. (Disclosure: this is for information purposes only, we are not accountants or financial advisors. Please seek advise from authorized financial authority)
   - $200K / $100k capital gain earnings (minus 15-20% tax payments) reducing their actual earnings 
   -With seller financing you are spreading out the payment, Seller is keeping more money in their pocket

• The transaction can close quicker without financing contingencies and lender requirements

• By accepting payments, the seller can possibly create passive income, with monthly payments paid for their equity

• The buyer and seller can structure terms to best fit their financial needs and goals to make it a win-win scenario

•The property does not need to qualify for traditional lending

• If property is vacant, with seller financing, the seller can save in holding costs and sell the property quicker saving money

• NO dealing with the banks, The SELLER BECOMES THE BANK!

We can help you prepare terms with your seller with the following documents and numbers.

1. What is the current principle pay off amount
2. Is there an reinstatement amount / fees that need to be caught up?
3. What is the monthly mortgage PITI and their interest
4. Are their any liens on the house?
5. How much equity is on the loan
6. What does that seller need to be able to move
7. When do they need to sell

By answering these questions, we can create Terms and provide an offer to your seller.

Call me today and we can jump on a call with your Seller to explain the Seller Financing Process and the Terms so we can Submit Offers on all your listings.
Call Alex, 210-387-0187