What is Seller Financing and How Does it Work – How Does Owner Finance Work Buying or Selling a HOME
This video is just a quick introduction to Owner Finance. As an agent who understands seller financing homes, I often get asked, What is Seller Financing and How Does it Work? So, I’m making this video, to give you a basic understanding of seller finance. Let me clarify, seller financing is the same thing as owner financing and I will use both terms. If you’re considering real estate as an investor or if you’re already investing in real estate and you don’t know what seller financing is or how to take advantage of this incredible investment opportunity, this video is going to get you excited because Seller finance is like rent on steroids. It’s a safe strategy that offers two HUGE advantages: LESS STRESS and A LOT MORE MONEY.
Link to my video – Why Seller Financing Makes Sense – https://youtu.be/WjP9qqXXYco
Utah Realtor: Ty Wilde
801-995-2337
TyWilde7@gmail.com
https://www.eaglemountain.com/
Wise Choice R.E.
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Buying a home is a huge investment. For most people a house is the biggest & best investment they’ll ever make, but because homes are so expensive there’s usually some kind of financing involved. Most people go with a traditional loan through a bank or mortgage lender. But many don’t qualify to buy a home traditionally and that is usually where owner finance comes into play.
Seller finance is also known as creative financing that means the buyer and seller get together and negotiate the terms and sometime the terms are very creative. Usually the seller still wants a large down payment of 5-10% but some sellers may take less. The mortgage rate is also negotiated but the rate will be higher than what a bank or conventional mortgage lender would give. This is one of the main reasons seller financing a home is worth it for the investor. The term or length of the loan is also negotiated. Most seller finance deals are short term, usually 3-7 years and the loan is usually amortized over 30 years with a final balloon payment due at the end of the predetermined time period. The length of the owner finance contract is usually agreed upon by both parties & depends upon the amount of time the buyer needs to clean up or repair their credit. Usually after 3-7 years the buyer should have had enough time to improve their financial situation and built enough equity in the house to qualify for a conventional mortgage loan and pay the seller off.
Owner finance is almost always beneficial for both parties because the seller can make significantly more money from seller financing the home instead of selling it traditionally. For the buyer, instead of living in an apartment & wasting their money on rent, they get to live in a home & pay it off a little each month. Plus, when they write the contract, they lock in the price of the home. Since the prices of homes generally increase over time the buyer can build some pretty good equity during the term of the owner finance loan.
This is a simple video on seller financing, meant to give you some basic knowledge of how it works. If you’d like a better understanding of why seller financing makes sense & how you can make A LOT of money as an investor on seller financed properties, be sure to watch my video Why Seller Financing Makes Sense.
If you live in Utah and you want to buy a home but you’re unable to obtain a loan traditionally, I can help you. If you’re looking to turn your home into an investment property or if you’re looking to maximize your profits on an investment property here in Utah, I can help you as well. If you’d just like to learn more about buying or selling a home on seller finance, feel free to or contact me @ (801) 995-2337
Ty Wilde is Utah’s best real estate agent on YouTube with over 150 real estate videos. Ty is Utah’s best Realtor on YouTube for New home construction videos. Ty has some of the Best Videos on buying a home, selling a home and Real Estate investing. Subscribe to Ty’s channel for the best real estate videos on YouTube.
Editing Help – https://www.youtube.com/channel/UCR3aV0D4k-gqkxP2uCxIMeQ
Music HOPE – Keith Kenniff
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