Many people believe that a real estate broker is needed to sell their house. So they post it with a broker who may or may not sell it and if they do charge exorbitant fees. One would think that that commission would inspire to work harder for you. In some cases it does. In many others though, we have heard of houses sitting on the market for over a year with the realtor only showing it once.

The next option that you have is to sell it yourself. But how? Is placing a sign on your front lawn enough or do you have to spend thousands in advertising? There is actually a way to get the ads that you place and the sign on your lawn to have your phone ringing off the hook with excited buyers.

That way is owner financing. With the economy what it is, many individuals' credit have dropped making it more difficult to get a bank loan. Many of them are good people who were laid off for a while or have had a sickness in the family. They are back on their feet and ready to buy a house but don't have a ton of cash to put up front and the banks turn them down. This is where you come in. You are not just selling them a house. You are their problem solver. Instead of paying payments to the banks, you can arrange it so that you are the one who receives a monthly mortgage payment and the best part is you can demand top dollar.

Need cash now? Create a note giving you the legal right to these payments then sell that note for a lump sum to a note broker. A good note broker will even show you how to structure your note to receive top dollar for it.
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Source: http://www.re-articles.com/how-to-sell-your-a1430.html

pumbit2
While you write a good artical one need to be aware of all the facts. Sellers need to look at their net. You failed to show them that. What you want them to do is do owner financing with a note and then sell that same note to an investor. The investor is going to want a discount on the note. Usually its arround 50-75%.
If one pays a 10 percent commission paid to an real estate broker it still going to net a seller 25-40% more then your proposal.

Please stay with childrens books http://www.digibuy.com/cgi-bin/product.html?102792035541

OMG good catch.. LMAO

Books and theories and articles sound great but are far from the truth.

Yes there are people that could pay every month with owner financing.

I have buyers like this now,most of the sellers in my area that don't owe much on there mortgage on the home that's listed have it earmarked for the new house they are going to buy or already have bought the house and have the equity tied up in a 90 day bridge loan.

The problem with owner financing is many.On a new note you will be lucky to get 50 percent of face value,the reason is there is no track record or history of good and timely payments so there is more risk.

Most sellers would rather discount thousands and be paid now than hold a note worrying if the buyer is going to trash the property and leave them holding the bag.I would deinitely collect 5k to 10k up front if the deal went bad.As mentioned above it makes more sense to sell outright.

I'd be interested in keeping this thread alive. Sure, seller financing is one way to add value to your property, simply by enlarging the pool of potential buyers. What are some others?

Some that obviously come to mind:

• Updating seriously out-dated decor
• Cleaning & Decluttering
• Updating fixtures and appliances
• Minor landscaping
• Offering closing cost help

What else can people come up with? What are some of the common mistakes you see people make that cause them to lose thousands of dollars from their ultimate sale price?

Chances are if the buyer is in such bad shape they can't get regular financing, you're better off not offering seller financing. The headache of a potential foreclosure will cost a lot of money.

Just drop the price a little lower and it'll sell.

I can tell by that comment that you have no clue about creative financing to add value.

There are many buyers that cannot qualify for one reason or another but are fully capable of making the required payments. I use this with some of my investment properties. I have had people that had just started their business and did not have the required 2 yrs of tax returns to get conventional financing. They bought one of my properties and then refinanced in 14 months.

Let's not bring animosity from that stupid door knocking discussion into this one. I have a clue and have looked into this. It's just not something I'd recommend for the following reasons:

If high profile mortgage investors like Fannie Mae and others aren't willing to accept those people, there's a good reason for that. It's much cheaper for them to handle loss, and they don't want to do.

You are taking a high risk, plain and simple, in order to avoid having the house sit on the market longer, which is a much lower risk. I'd gladly give up a few grand on the house price in exchange for someone who gets their own financing.

Btw, to me, someone who runs their own business for less than two years is a high risk. Once or twice you get lucky, than one bad case will wipe out all your profits and then some.

Oh, and by the way. Just about anyone can get SOME kind of financing. There are very creative lenders out there. The question is, what rate will they get charged? If you are willing to give these lower credit rated people the same rate as normal people get with a conforming loan, than you're just plain stupid--you're taking on a high risk without higher. Otherwise, there's no reason for them to do owner financing.

You just keep thinking that way and smart investors will be the ones making the money that you could have gotten for you clients.

Creative Financing is not the answer for every situation but it is right in many situation and the key is know when the time is right.

There are people that cannot obtain financing but can afford the payments. Owner financing has one additional benefit to the buyer in that it does not appear on their credit report which makes it a perfect vechile to purchase an investment property and the buyer is more than willing to pay a higher rate.

So did you read a book on creative financing and could not figure out how to properly structure the deal? Your blanket statements are what's plain stupid.....in your own words!

Another way to sell your house is via a lease purchase or a lease option.

In fact you can even sell your house this year for what it would bring at full price next year with a lease purchase.

In my experience people that want to buy/own now but are unable to qualify for whatever reason will pay a premium to start their buying process now in this fashion.

I've successfully done several of these deals and plan to do several more.

No, I don't sell 'how to do it' courses nor do I give lessons although I know some people that do, I did take their course.

I get a non-refundable down payment (and call it a down payment) which I credit 100% of back to the buyers at closing, charge an above market value rent which I credit 10 to 30% of, depending on how far above market value, and expect my buyers to close within a year or 24 months at the most.

After they've lived in the house for a year and made their payments on time to me most lenders treat their new mortgage like a refinance making the process much easier for them.

Jim, thats a great response. I have had several realtors bring me buyers that do not qualify, but in say 6 months or a year should qualify. The realtors always want to do a lease purchase, and I am fine with helping on my end if I can. The one thing I have always wondered about was how the realtor gets paid in the transaction. When I refinance the lease purchase in 12 months there is nowhere that the lender allows the realtor to recieve comission on the HUD. How do you collect your fees? In the begining of the lease purchase or when the buyer refinances in say 12 months? I understand if the seller pays you outside of closing, but was not sure how all of that actually works for realtors?

On the houses I do lease purchase for I'm usually the seller in addition to being the Realtor.

If another Realtor is involved they get paid at the actual closing when the buyer takes title.

All commissions paid to anyone appear on the HUD 1.

I've started doing my lease/options as pure rent-to-own contracts. Basically, it's a P&S with an extended closing date (say, 6-12 months out), and a pre-occupancy rental agreement. I started asking myself why I was willing to give my buyer something as powerful as an Option To Buy. The P&S does the job, the agents get it, the rent credit becomes earnest money. It's all very clean.

actually with the economy the way it is, ie 100-106% financing, dropping int rates, i sincerely feel Owner Financing is only 1 more incentive for selling a house at full price, and not the solution as this topic with its attractive title makes it out to be.
i see people with horrible credit (ie, 490, etc) getting approved for $500k - $1M mortgages left and right sometimes lower than 5% down. the mortgage brokers creativity not under legal/bank scrutiny...yet.

thanks for the info

How to sell your home for full price????
Price it correctly for the start!