Owner Financing - Simultaneous Closing

It is a very well known fact that Seller Financing sells properties fast, especially with properties or prospective Buyers that do not conform to traditional lending/mortgage requirements. The Seller offers to hold the mortgage note (seller financing mortgage) and receive the monthly payments from the Buyer as a bank would.

The problem with this approach has been that Sellers sometimes don't want to collect small monthly payments, but instead want to cash out at closing to buy another property, to cover closing costs or for many other reasons. There are many benefits of seller financing, but sometimes they are not enough to help closing a deal.

The solution to this dilemma is right here. We can do a Simultaneous Purchase!

Basically, this is how a Simultaneous Purchase of a real estate note works:

·          The Seller sets the sale price to exactly the appraised value and advertises "Owner Will Finance...No Bank Qualifying!" 

·          Interested Buyers go through a pre-qualification process to determine the best prospect

·          The Seller and Buyer agree on the structure and terms of the note to be created (we can provide some guidelines) and sign a Real Estate Purchase Contract 

·          At closing the Seller creates a 1st mortgage and simultaneously sells/assigns the mortgage note to us 

·          The Seller receives the Buyer's downpayment plus the proceeds from the sale of the note (we pay top dollars for 1st mortgages). In a Simultaneous Purchase (or Simultaneous Closing deal) the Seller normally covers closing costs from his proceeds.

Example : 

Let’s say the Seller owns a property that has been appraised at $100,000, but because it’s not a conforming lot, is having problems getting qualified buyers. Buyers don’t seem to commit to the purchase and the ones that do, don’t get their mortgage approved by the Bank.. 

The Seller has the house advertised at $90,000, expecting to get $80,000-$85,000 after incentives and costs have been paid out. But not even this price is attracting real buyers. 

Here comes us. We advise to create a $90,000 note, the rest ($10,000) would be the downpayment.

It would be a 9.5% interest, 360 months note, paying $756.77 mnthly (Principal + Interest).

We are going to buy this note for approximately $81,000 cash on closing day or shortly thereafter.

Add the downpayment and the seller gets $91,000, less normal closing costs. 

This deal attracts a swarm of buyers and in a few days, the Seller makes up his mind and accepts one of the offers.  

On closing day or shortly thereafter, we make the purchase and the Seller is out of the picture. A perfect example of how Simultaneous Closing of a Seller Finance mortgage makes a real estate sale possible. 

There are no hidden fees or costs other than the regular real estate closing costs that have to be paid anyway. 

                                                         856-833-9279