Get a Home Loan Without Qualifying!

So this is the deal, I’ve received calls throughout the years from potential home buyers that want to buy a home because they heard of a juicy home buying and wealth building secret… A Seller Carry-Back AKA Seller Financing.  The concept is simple… Most home buyers borrow money from their bank (loan) in order to buy a home, with that loan the seller is paid off and the bank becomes the “note holder” and places a lien against the property to secure their position.  With a seller carry-back, the seller becomes the note holder and places a lien against the property.  So the reason I’m writing this is because a few days ago, my client that is selling his condo called me and said, “Voltaire, I want to carry paper!”.  This was music to my ears!  Why?  Well because there are many benefits to a seller carry back:

Buyer Benefits: 

  1. No Qualifying – no credit check, no job, nothing!
  2. No Loan Fee’s – the sellers typically don’t charge the buyer like a bank would!
  3. Quick Closing – The seller most times can close quickly since there is no waiting on 3rd parties!

Seller Benefits:

  1. Earn Interest on Your Equity – instead of cashing out now, you leave your money as a lien against the home and you earn interest!
  2. Monthly Income – you have the income coming in monthly
  3. Taxes – if you owe capital gains, you owe it over time and not all at once
  4. Protection – You have a lien against the property and can foreclose if payments are missed

The Process:

  1. Seller finds a buyer
  2. Buyer and seller agree to purchase price, length of term, interest rate, down payment.
  3. Buyer and seller open escrow and fill out documents
  4. Buyer conducts their inspections
  5. Buyer brings in down payment and closes on deal
  6. Buyer begins making monthly payments to seller.

Example:

  1. Condo Price: $180,000
  2. Down Payment: 20% = $36,000
  3. Note: $144,000
  4. Interest: 4.5%
  5. Term: 30 Years
  6. Payment: $654

Checkout the YouTube Video I created that explains it in detail!  Good Home Shopping!

Click Here to Watch the Video!

-Voltaire Lepe, Broker @ Lepe Tendwell Properties

Speaking