Deb's Lake Conroe Real Estate & Stuff! : Today's Lenders Are...

Today's Lenders Are...

Today's Lenders Are...

Lenders are toughTough to deal with, right?
Tightening their requirements as tight as possible.
Being scrutinized by Government.
Under a microscope.
Swinging a totally opposite direction.
Slower than ever.
Under pressure themselves.
More heavily regulated.
Overwhelmed.
Worried.
Under staffed.


And so...
I am going to repeat myself about the "NEW LENDER" we must all consider.

The HomeOwner! Your Client. Your new Listing!

Of the last 4 leads that have come to us, 3 of the people were looking for "Owner Finance" or "Lease to Own".

Are you getting these too? Do you have anything to offer them?
Ask the right questions
So, what are we forgetting? Do YOU ask the question:

"Do you carry a note on the property or is it free and clear of liens?"


When you list a home are you discussing the alternate financing possibilities with your clients?




Do you realize that


One out of 5 older homeowners will usually own the property free and clear.

Open up a new and creative way to get the property sold as a Win-Win for all.
 
 
 
benefits of owner financing
Benefits of Owner Financing:


 
  • Cash is worth less today. 
  • Long Term Payout provides monthly income for those looking to retire
  • Interest rates are normally higher than the market rate for Owner Finance
  • Many unqualified buyers have the 20% or more down for purchase
  • Atipical properties will not be denied by a Lender
  • Buyers that Owner Fi will usually pay more for a property
  • Owner becomes lender 
  • Legal closing at table
  • Less Closing Costs
  • Less waiting time to close
  • Buyer can Sell property as they will be legal owner to pay off note
  • All is the same with Owner Fi as with a Lender
  • You've creatively SOLD the property!
      So, Remember one of the MOST IMPORTANT QUESTIONS YOU CAN ASK!
 

"Do you carry a note on the property or is it free and clear of liens?"

 

*Buyers and Sellers should seek the advice of a Qualified Real Estate Attorney or Tax Attorney regarding "Seller Financing".

 

 

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Comment balloon 16 commentsDeb Brooks • July 29 2011 12:11AM

Comments

The Era of the Banks is over.   Owner Financing is the Way to Go!

 

  *Buyers and Sellers should seek the advice of a Qualified Real Estate Attorney or Tax Attorney regarding "Seller Financing".

Posted by Fred Griffin, Licensed Florida Real Estate Broker (Fred Griffin Real Estate) over 7 years ago

Actually I am close to having 3 contract for deed listings. Hopefully they get some action.

Posted by Chuck Carstensen, Minnesota Real Estate Expert (RE/MAX Results) over 7 years ago

Fred, I totally agree. One of the benefits is that we would go through lawyers and Title Companies just like normal. All on the up and up. I have done several of these lately including my own!

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) over 7 years ago

It is an whole new way to provide financing. Back in the 90's we did a lot of owner financing - of course I was selling in Texas and the prices were much lower than in California.  I recently spoke with one of our agents in the office who said he has some sellers looking into the possibility of doing owner financing. There is always a way to buy a home.

Posted by Linda Urbick, Selling San Ramon Valley - 925-786-5132 (RealtyOne Group) over 7 years ago

Call me chicken...but I'd be afraid to loan to someone who could not get a loan the traditional way. 

Posted by Sonja Patterson, Texas Monthly 5-Star Realtor Recipient for the Hou (Keller Williams - BV) over 7 years ago

Chuck, way to go! There are more people out there than you realize I'll bet. Many business owners that can't finance the conventional way...many people period! You'll get them sold. I'm sure. Good luck and let me know how it goes.

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) over 7 years ago

Deb, yes, it's become more talked about. Have not done a seller fi myself, yet, that is. Thanks for the post, great information. I do know, like Fred said, buyers and sellers should seek out legal advice.

Posted by Pamela Seley, Residential Real Estate Agent serving SW RivCo CA (West Coast Realty Division) over 7 years ago

Linda, I think you will discover this is an awesome way to go. The seller will help to guarantee a monthly income and the interest is higher than conventional and you can even set it up with a balloon payment due in a few years for the final payoff. What's not to like?

 

Sonja, I don't think I'll call you a chicken but after you looked into it more you would agree with the plan. Many good people, business people that have great credit simply cannot qualify for a conventional loan.

Which, of course to me seems ludicrous since we are suppose to be based upon Free Enterprise but I digress...

In fact, you have better luck getting financing if you've clocked in to a job for two years with average credit than you ever do if you gave everything you owned, worked 100 hours a week to create a business and still have great credit! Just keep an open mind for the future. You will be seeing much, much more Owner Financing!!

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) over 7 years ago

Pamela, yes and your Title company should offer your clients a good Real Estate Atty for advice if you do not feel comfortable with using the Promulgated forms and handling it like a Lender sale. Although, that's what is it. Simply a different lender. At least we still have the freedom to sell something that belongs to us!

Yea~

Posted by Deb Brooks (Brooks Prime Properties Wichita Falls Texas) over 7 years ago

Great question Deb! I bookmarked for future resources... Thank you!

Posted by EMILIA B COOPER, REALTOR® SFR.NCHSE.AHWD, Short Sales, Foreclosure & Bank Owned Real Estate (LAROSA REALTY) over 7 years ago

I get people more then once a week that ask me about CFD or lease purchase or owner financing but you are hard pressed to find it here in my area! None of the sellers seem to want to do it. I know alot more stuff would be selling if more people were open to it!

Posted by Rosalie Evans, The Evans Group, Sioux Falls, SD Homes For Sale (Meritus Group Real Estate) over 7 years ago

I think it must be because of the market I work in... but most of my deals are cash.  Lucky I guess!  K

Posted by Kathy Schowe, La Quinta, California 760-333-8886 (California Lifestyle Realty) over 7 years ago

2 agents in our office were talking about how there was so much more creativity when interest rates were sky high, and they were getting homes sold because of this type of thinking!

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) over 7 years ago

Everything in this department has changed indeed.  Just keeping up with all of the changes can be daunting.

Posted by Paula McDonald, Magnolia Realty ~ Granbury, TX 936-203-0279 (Magnolia Realty ~ Granbury) over 7 years ago

Deb, You Bet I do. These are all great reasons to consider owner financing, both from the sellers' and the buyers' perspecvtive.

Posted by Jeanne M. Gavish, Keller Williams Realty Elite Partners - CIPS,GRI,S (Jeanne Gavish, Keller Williams Realty Elite Partners) over 7 years ago

It is definitely time to get creative.  Great list Deb!  I am bookmarking!

Posted by Debbie Walsh, Hudson Valley NY Real Estate 845.283-3036 (Shahar Management) over 7 years ago

Participate