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Some home owners are not familiar what seller finance entails.
If you own a home free and clear then you have the option of becoming the bank and creating a loan agreement that you feel is a fair price and terms for purchasing your property.
You create as the seller, the interest rate, ballon payments, and down payment amounts, H&G will highly consider what you lay on the table.
In most cases, the seller can earn a higher monthly income taking back financing rather than selling the property, paying the taxes, and putting the balance into a savings account.
Some benefits for this option are:
Sellers may sell: Property in the same condition without costly repairs or modifications needed by conventional lenders.
Familiar investment: A mortgage secured by the property you owned for a time is much more comforting than any other unfamiliar investment.
Regular Income: Continuous income without worrying about owning and managing a property.
In case of default, the seller gets to keep down payment, plus ownership of the property.
Tax advantage: Selling in installments defers capital gain on the property, which helps save a high level of taxes.
Higher Returns: The seller financing contract provides higher returns over a period than a one-time, long-term Capital gain.
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