Dallas Cash Offer has purchasing options that involve owner financing. Lets first discuss what owner financing means….
When the seller carries the purchase via a loan or note, it is called an owner carry or seller financing. In this scenario Dallas Cash Offer would work with the seller to determine a fair interest rate, monthly payment, and terms of the loan. In basic terms, the seller becomes a lender and collects monthly payments just as a bank would.
The terms are then defined on a promissory note and deed of trust which is filed and recorded with public records. This protects both the seller and the buyer.
The “owner carry” benefits to a seller are as follows:
1. Higher sales price. We typically can pay a higher sales price as the seller carried financing is typically less than we would pay for capital via our normal sources.
2. Tax breaks. Sellers may pay less in taxes via installment payments. Please consult with a tax accountant for specifics.
3. Monthly payments/increased bottom line. As the seller in this scenario has become a short-term lender, monthly payments can be counted on for monthly income. This increases the overall bottom line to the seller as they get the actual sales price for house plus the monthly mortgage payments for the life of the note.
Example scenario:
- House sale price: $100,000
- 6-12 month note @ 7% interest: $700 per month payment
- $700 x 6 months = $4200 in additional income.
- Total bottom line: $100k + $4200 – $104,200 vs. $100k
Ready to discuss what a Seller Carry can mean for you? Call or submit your info to us so we can meet to discuss your options.