House and Keys

Most home sellers make this massive mistake and it's costing them tens of thousands of dollars. What are they doing? They are selling their homes the same traditional way that everyone else is. What if I told you there's a proven strategy that'll net you tens of thousands of dollars more than selling your house the same old way that everyone else does. Using this approach, you can sell the house well over market value and create passive income. Sound too good to be true? I promise it's not. If you're ready to sell your home, this will be the most mind-blowing video that you ever see. Be sure to watch the end where I'll share an astonishing and real example.

It's not really surprising that sellers don't even know this is an option, but it's kind of odd that most real estate agents, even the best in the industry, don't offer this as an option to their clients. Maybe it's a little too overwhelming or maybe they just want to keep things simple. Or surprisingly, I found that many agents don't even know what it is.

What am I talking about? This lucrative system is called seller finance, and this system is older than America itself. It's how most people bought and sold real estate before banks came along to take all the profits. Seller finance is awesome because it benefits the seller and the buyer. As a seller, you're helping those who can't obtain traditional financing purchase a home, and when mortgage rates are this high, you might be giving the buyer a better deal than what the banks are offering.

Seller Finance Advantages

But more importantly, what's your advantage as the seller? Number one, you should be able to sell the property above market value. With seller financing, you gain future equity from day number one. We often sell homes for tens of thousands of dollars above market value. The higher price increases the buyer's monthly mortgage payment and your profits. Buyers understand that if they had to wait several years to purchase a house, that prices would most likely be higher, and your home is often one of only a few options available for them.

Number two, as the seller you maintain control. A well-written contract means you remain the primary owner. It's rare, but if the buyer stops paying, you can evict them quickly and keep all the funds that you've received from this transaction. Then in most cases, you can resell the house for more and collect another large down payment. Most sellers are excited to reacquire the property. Here in Utah, we've created a system to peacefully remove the buyers without them damaging the property.

Now, when it comes to seller financing, do not try to do this on your own. Always hire a realtor who specializes in seller finance. In each market, there's only a handful of agents who really know how to maximize your profits and protect you at the highest level. Carefully select an agent who consistently deals in seller finance. If you live in Utah, we would love to meet with you to explain the benefits of seller financing based on your specific situation.

Number three, little to no closing costs. When selling a home, traditionally, buyers often ask sellers to pay their closing costs. This rarely happens on seller finance because you're not using a bank, which means your closing fees are a fraction of what you'd pay for a normal transaction.

Number four, it's quick and easy. I'm not talking about how fast the homeless sell. There's too many factors to guarantee that. I'm referring to once the home goes under contract. Things can move fast because buyers can close in less than a week, not the traditional 30 to 45 days often needed when using a bank. Why? Well, usually there's no appraisal or home inspection. That means the price terms you originally agreed upon usually stay the same and delays are rare.

Number five, you choose the move out date. Yes, things can move fast, but if you need more time, buyers can usually accommodate that request. There may be some give and take, but for the most part on these transactions, buyers are flexible.

Number six, you charge a higher mortgage interest rate. Those with no credit, bad credit, or are not US citizens often can't get a loan. If they do qualify, the interest rate offered by the bank can be outrageous, so even though the rate you're offering may seem high, it's often lower than what the bank will give them. For those receiving these ridiculous quotes from traditional lenders, your high rate excites them. The combination of the higher sales price and the higher rate will push the buyer's monthly expenses well above your payment on that property.

Number seven, you can collect a large deposit, often $50,000 or more. Even after agent commissions, you should walk away with tens of thousands of dollars at closing. This sizeable down payment decreases the chance that the buyer will walk away, and you can leverage that large down payment to make more money faster. More on this in a moment.

Number eight, it's better than owning rental properties. On seller finance, there's no need to manage the property. You're not responsible for repairing or replacing anything. The upkeep belongs to the buyer, and because it's not a rental property, they'd be foolish to skip a payment. Not only will they pay a late fee, but they put themselves in jeopardy of losing the home. If they stop paying, you can quickly remove them from your property, and the absurd laws protecting squatters do not apply to seller finance when the contract is written correctly.

Number nine, seller financing is one of the best ways to build wealth, and it's a safe, easy way to invest in real estate. This system allows you to keep your home, earning passive income while purchasing a new home that you can live in. Not only are you earning a monthly income, but we also put safety measures in the contract to protect you, and we close at our title company with a real estate attorney to safeguard both parties in the transaction.

Number 10, seller financing will increase your ability to invest in real estate. There are loads of different strategies that can be used depending on your personal situation. Our team in Utah will tailor a plan based on your comfort level to help you achieve your goals. Seller finance is the fastest way to invest in real estate due to the large down payment, and you can use those funds to purchase another home and then do it again.

There are multiple strategies that we can use to speed things up for you. There are loads of benefits to seller finance, which we can talk more about in person. If you live in Utah and you have questions about selling your home or you want to know if seller financing will work for you, I would love to meet with you. Please don't hesitate to reach out to me.

We should clarify that seller finance is not for everyone and it's not always the best route. That's why it's important to meet with a professional to discuss your options, but in most situations, this is the most lucrative way to sell a house. I know many of you would like to know how much more you can earn using seller finance, so I'll share a real life scenario.

We recently listed a home in the St George Utah for approximately $700,000. At this price, the buyers would receive about $400,000 at closing from the equity that they've built in the home over time. Due to the large amount of equity in the home, my clients preferred to sell traditionally, but they were surprised to get a seller finance offer.

As luck would have it, we received two offers, one on seller finance and the other traditional. The traditional offer was for $15,000 below the price, which is fairly common in today's market. The seller financing offer was for $10,000 above the asking price. So we already have a difference of $25,000 between the two offers. On the seller finance transaction, the buyer's willing to put $250,000 down. That's a hefty sum, but it would still leave $150,000 trapped in the home for possibly 10 years as the buyer wanted a 10-year term.

We are not going to get into all the finite details, but after paying commissions, the sellers would walk away with nearly $225,000 and they'd earn an additional $15,000 per year. If the buyer stayed in the home for all 10 years, my clients would net a total of $175,000 more by not going with the traditional offer. Does anyone else find this unbelievable? Not to mention that at any time during these 10 years, if the buyer was unable to make a payment, my clients could take the house back. How crazy would that be?

Conclusion

So taking all this into consideration, what would you do? Would you take the $400,000 and walk away or would you take the additional $175,000 by selling on seller financing? This story perfectly illustrates the power of seller finance and why you should strongly consider this as an option when you sell your home.

If you're looking to sell your home and you have a super low mortgage interest rate, you'll earn tens of thousands of dollars, potentially more than $100,000 by selling your home through seller financing.

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