Buying Arcadia Real Estate With Seller Carry Backs

Arcadia real estate is generally thought of as some of the most beautiful in all of Arizona

. But with beauty there is a price, and in this particular area, it can often be an expensive one. Nevertheless, people are still able to buy in Arcadia every day even though the homes themselves may be a tad out of their price range. Through the seller carry back option, a real estate investor can give himself options while also giving buyers a luxurious place to live at a not so luxurious price. If you are thinking about buying in this area, or you are an investor looking to unload property to a wider audience, then the seller carry back option may be the best one for you. Here are some reasons why:

1. Seller carry back gives buyers a home they otherwise couldn't afford

It is getting more difficult to buy a home through traditional mortgages. Does that mean that only the rich should be reserved a decent place to live and relax? Certainly not! If a buyer chooses the seller carry back option, he can apply for a traditional loan, get approved for as much as he can at the lower interest rate, and enter into a second loan with the investor at a slightly higher rate for the remainder of the purchase price. In other words, if you want a $100,000 home, but can only afford $75,000 at 4 percent interest, you could still agree to a second loan, which the real estate investor would hold in his name, for the $25,000 amount at a rate of 8 percent for the next 5 years or so (much lower than the 30-year mortgage). This is fair to the investor as it makes him more money for taking on more risk. And it is fair to the buyer because it means that recent changes in lending practices will not handicap his ability to purchase a great home.

2. The real estate market of today is a tough one

In 2008, the housing market crashed. Since then it has been trying desperately to play catch-up, but values have still come nowhere near the amount they were originally at. Still, if history is any guide those tides are about to turn. And when they do, the real estate investor and the buyer have a chance to make a lot of money. The investor, by using seller carry back, can sell more properties to a wider pool of interested buyers. The buyer, once the terms of the second loan are paid off, will cut their house payment considerably and own 100 percent of the real estate at the end of term.

While seller carry back is not for everyone, it is an increasingly supportive way to buy a home.

by: Gen Wright

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