Sell Now, Owner Finance the 1st, Sell
1st at Closing
I was asked what to do with my $200,000 in equity in my home? Today’s idea generates access to your equity and an income stream and keeps you connected to the house for future use.
Here is the idea:
- Sell
Now “Owner Financing Possible”. Homes
that are owner financed sell for 10% - 15% more because of the owner
financing.
- Make
the Buyer put down a substantial down payment
- Sell
your “Note” at closing to a Note Buyer at 85% to 95% of face value. You basically get most of your equity
now. You can get a quote for the Note
before you enter into the contract!
- Keep
a 2nd Note of 20% at 15-year amortization, 6% interest. People getting owner financing will pay
more in interest gladly. You get
monthly payments because you are the BANK!
- You
now have basically most of your equity to do as you wish and you have the
Buyer making monthly payments to you on the 2nd Note.
- Should
the Buyer default, you have the option to foreclose them out and take the
property back.
- The
Title Company creates the Notes, your Realtor finds you the Note Buyers
and possibly the Buyer themselves.
Math Example: (excludes closing costs)
Market Value of your house: $300,000
Ask Price: $360,000
Total Amount Owner
Financed: $342,000
1st: $273,000,
30-year, 6% interest
2nd: $69,000, 15-year, 6% interest,
payment to you: $582.26/month
1st Note sold at closing: $273,000
X
.85
$232,050
cash to you at closing
Down Payment at closing: $18,000 cash to you $250,0050 total
You now have $250,050 to use as you wish, plus a monthly income of $582.26/month. If you are interested in this technique, call any time. I would love to help. You can find me on www.5kflatfeelisting.com
Buyers get: Sellers get:
FREE Home Inspection 5k
Flat Fee Listing
FREE Termite Inspection FREE Home Inspection
FREE Home Warranty FREE Termite Inspection
Best,
Geoff Nowlin, Phoenix Realtor
480-466-3737
