Make it Easier for Buyer to Buy

Present Condition –For several years everyone was jumping on the real estate bandwagon, lenders made it very easy for developers and buyers to borrow money. 

Developers used the pre-construction method to build, build, build because when developers have the money that is what they do, which worked great until buyers who were buying to flip were unable to flip and now we have an inventory of 3 to 4 years and buyers who are unable to close on their purchases. 

The lenders that created the problem by lending to anyone that could breathe on a mirror now have restricted their lending practices making it extremely difficult for most buyers to qualify for a loan. 

Present Position  -A seller trying to sell their property at a reasonable price is having a difficult time finding a buyer that has all the qualifications to purchase their property, so the first thing they do is lower the price.

They receive no offers so they lower the price again.

Buyers still want to buy but, they cannot meet all of the lenders qualifications, they are not a great risk but may lack the large down payment. 

Remember most buyers are not speculators they are looking for a home to raise their family in, and price is not always the most important thing to them, as is the ability to purchase and pay for the home.

You have been trying to sell your house for the appraisal price but, have had no offers and have dropped the price a couple of times. 

A buyer you are comfortable with is willing to purchase your home for your original price but does not have a large down payment.

Possible Resolution –Instead of lowering your price again and again, give those dropped prices to a buyer in the form of a second mortgage in lieu of a large down payment. 

Benefit to Seller –Seller has received fair value for their property and will receive payments on the second mortgage, which they could use to buy, sell, exchange, etc.

Benefit to Buyer –Buyer purchases a home they can afford to raise their family without having to come up with a huge down payment.

Benefit to Mortgage Broker –Will allow a creative mortgage broker to put more deals together.

Seller Financing -  gives the seller a greater return with seller financing than with conventional financing.

Example:

With conventional financing the seller will receive the proceeds from the sale in cash, which on the surface looks great, but what is the seller going to do with the cash.

Pay off some obligations, purchase some things they may or may not need, and then what do they do with the rest of the money, put it in the bank at a very low interest rate.

Invest it into the risky stock market, invest in another property. 

By doing seller financing you will be receiving a cash down payment and a monthly income stream. 

This income stream can supplement your income, or can be sold at a discount, used as a down payment on another property, used in a lease option deal, it can be used to exchange into another property or properties.

                                 The possibilities are open to your creativity.

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or call Wayne H. Wagie 786-326-4747

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