Real Estate Brokers

YOU could earn faster commission with Private and Seller Carry Back Financing.

Close deals quickly with private Mortgage Investors

There are private individuals who originate mortgages. There are many companies called hard money lenders that do the same thing. Typically these mortgages are a conservative Loan To Value, often 65%, short term and high interest. To make these mortgages work, of course, either the borrower must buy the property for well below the appraised value, put down a big down payment or the seller must carry a second mortgage. Sometimes all of the above!

Why would a property owner sell a property for less than it is worth and then perhaps hold a second mortgage? Obviously most won’t. But thousands of properties are sold at distressed prices every day.

We give you the facts, so you can advise your client professionally.

Learn about Private Mortgage Origination.

Make more money, more quickly with Seller Carry Back financing

Not every seller can, or will want to carry back financing. It generally means the property is owned free and clear. But here are the main advantages for them:

• Faster closings. When they are the ones approving the mortgage, closings can take place in days instead of weeks.
• Less expenses to the buyer so can get a higher price.
• Greater flexibility with financing. Can take lower down-payments, lower (or greater) interest rates, shorter amortization periods.
• Can ask for and get top dollar for property.
• Seller can sell the mortgage for cash, often at closing. They can advertise their mortgage for sale here.
• Installment sale tax treatment on investment properties.

• Cure these problems:
  • The buyer did not meet the lender’s income to debt ratios
  • The buyer could not qualify for institutional financing as they were self-employed
  • The buyer’s credit history has some glitches
  • The property has been on the market so long that you are about to lose the listing
  • The buyer does not have enough cash for a full down payment.

• With seller financing followed by selling the note:
  • Your seller can “cash out” partially or totally and never have to collect a single payment
  • Your buyers can own a property that may have been just out of their reach.
  • You close a deal that would have fallen apart, and put extra commission dollars in your pocket.

Learn about Seller Carry Back Financing.

Deal Saving Ideas

• IDEA! Buyer can only get 80% 1st mortgage but only has 10% not 20% cash. Even reducing the price 10% won’t help, as the lender will still want 20% cash. Would the lender give an 80% first mortgage and let the seller hold a 10% second mortgage with the buyer putting up 10% cash? The second mortgage created here is saleable for cash. But expect to take a large discount, perhaps 40-50% due to the risk here.
• IDEA! Would you be willing to take back a second mortgage for your commission? Of course you would sooner have cash, but if there is no other way to get that deal to close and the listing is almost expired then perhaps something is better than nothing. The benefit to the Buyer is they need less cash to close.

Sticky Websites

The best way to make your website “sticky”, that is to say, one that people keep coming back to is to fill it with useful advice. You are invited to reproduce our material on your website FREE of charge.

Free Spreadsheets

FREE Microsoft ®Excel spreadsheets for you to distribute to clients with your name, address etc. Allows you or client to figure their monthly payments with increments of the interest rate and/or principal to see the difference it makes.

Home Office

Learn about the advantages and pitfalls of Home Office Tax Deductions.

Investment by Professionals

Learn about the Tax Benefits of Real Estate Investment for real estate professionals.