subject: Offering Seller Financing To Sell Your Property? Try Targeting These 2 Groups For A Better Sale And Note [print this page] Offering Seller Financing To Sell Your Property? Try Targeting These 2 Groups For A Better Sale And Note
Many property sellers offering owner financing to help sell their home or commercial property are just hoping some warm body with at least a 10% down payment will come along and take their property off their hands. And while this may result in moving the property, it may also result in selling to a buyer that may struggle to make the payments or in the creation of a mortgage note that is difficult to sell for a good price. This is not unlike what happened in the sub-prime mortgage crash.
While you can obviously still sell your property to anyone that comes along, here are 2 groups that you might want to target to get the best buyers as well a mortgage note you can sell for more money down the road.
The first group is people who are self-employed that have great credit and a nice down payment that can't get a conventional mortgage due to insufficient taxable income showing on their tax returns. You would be surprised at how many such people are out there desperate to get into a home.
The second group is couples where one has great credit and not enough income to buy the home they want with a conventional mortgage and the other spouse or partner has nice income but took a hit on their credit due to an illness, short sale or even foreclosure when their spouse or partner wasn't on the loan. Since most note buyers do not verify income, selling to the high credit person (only) results in a note that is much more valuable while you effectively have two income earners. Couples in this situation will usually be very conservative in how much debt they take on so as to never get into that situation again. The result is a lower risk buyer and a note that will be more valuable after the sale.
So if you package and price your property properly and develop good advertising targeted at these groups, you may find yourself with great buyers you'll be happy to offer financing to. These buyers will also help you get a much better price for your note due to better credit and a higher down payment if you ever need to sell your note.
