The following is not for everyone. There is a large percentage of property sellers (owners or investors) that this will make no sense to do. However, there is another relatively large percentage of property sellers who if they knew about these options, would consider this strategy and implement it decisively. Those are the ones I hope will receive this information.
Now if you are risk-averse then I would say stop now and forget anything about what I am about to say. However, if you are like me and can tolerate mid to low risk in an investment this is an option you should consider.
Basically, this strategy allows you to become the bank. We all know that banks make a great return on their investment. That is why they have some of the biggest buildings and are continuing to grow. Let’s be honest, if you were to make the rates of credit cards, you too would be doing great.
At this point, let me give you a key warning. Please work with a professional when considering the following strategy. That includes working with a real estate agent or consultant who can share with you both the pros and cons of the strategy. My warning to you is to make sure you understand the pros and cons and not someone’s opinion including the agent’s or investor’s opinion. Gather the information and make the decision for yourself.
So what is this strategy that will give you a better financial return with minimal risk? Seller Financing also known as Owner Financing. Basically, you become the bank and you can charge bank interest rates or more. These transactions are not hard to structure and easy to manage since this is not a rental. Real Estate Agents can show you on their standard contract where this option is available to every Seller. Yes, the bank goes through extensive and costly checks and balances which you will be able to do as well but without the heavy costs. Hence you need a professional to ensure everything is covered and confirmed.
As I mentioned in the beginning, this is not for everyone but for those who see potential or have questions, it is in your financial interest to explore and see how this can help you build your financial strength and independence.
