What can an Investor on terms do for a Home Owner who wants to SELL?
An Investor on Terms is all about finding a solution with the tools and within the rules of the ruling real estate law.
As an example, in an Owner Finance deal, the Seller is providing the finance, getting a mortgage from the Buyer and getting paid back just like an institutional lender would do.
Lending Industry and the Law
The law allows a Seller to finance the deal, so if that achieves the Sellers’ and the Buyers’ goals, it’s totally legal and very ethical to do. Don’t ask a bank though, as they would be missing out on profits that would come from the Buyers if they were to get a traditional mortgage. Institutional lenders dominate the market and are powerful players in the financing market, but they don’t have general exclusivity in the US. Despite a heavily regulated industry, there are many ways to get a loan and institutional lenders are just one.
An Owner Financing Deal (also Owner Finance or Seller Finance) is one of many possible solutions for Sellers and Buyers and Investors on Terms can understand the underlying issues and create the deal that addresses them effectively.
Not mainstream, but Convenient Solutions
Although there are still rules to follow and they vary from state to state and even by county and town, if Sellers and Buyers are in the position to make such deal, there’s a lot to be gained for both, and for an investor who makes it happen.
Sellers can leverage the deal to get a great price.
Buyers are able to buy and pay in installments without having to go through the ridiculously tight guidelines that are imposed on them since the 2008 downturn (before it was to easy to get a mortgage, now too difficult often in the wrong way).
Investors on Terms’ Expertise
Despite the intricacy of some deals, and the need for absolute certainty of compliance with the law at all levels at that exact moment in time, Investors on Terms are able to navigate through the challenges, have a network of professionals who contribute to make every deal compliant, recognize and mitigate risk, can read the market and have all it takes to get a real estate property sold.
There are dozens of ways of selling a home, Owner Financing is just one. It’s also worth mentioning that what is usually known as Owner Financing (typically C2C) can be very different in the details from what an Investor on terms has to design (usually C2B2C, or C2B or B2C) to make the deal work and it can be much more complex. This creates many variations of the same deal. However, the concept is the same.
As an example, in a classic Owner Finance sale, the property is Free & Clear with no underlying liens from mortgages, tax or any other. The owner has either paid cash or paid off any loan and there is no other debt. However, an Investor on terms can easily set up a deal where only some of the equity is financed or none at all, and with all sorts of terms, conditions, clauses and contingencies.
The bottomline for a Seller is that a trained and experienced Investor on terms has all the tools for presenting an effective solution to any reasonable Sellers who are just stuck or challenged out of no fault of their own or the property’s. Many times there is more than one to choose from to better address the Sellers’ priorities in order.
Once again, don’t make the mistake of thinking that Owner Finance deals, despite how many variations they may have, are the only type of Deals on Terms made by Investors. The above is just an example to explain the base concept of adapting to the many different situations of Sellers and Buyers.