How Does Owner Financing Work for the Seller?

How does owner financing work for the seller? If you’re a seller, you’re going to fall in love with what you’re about to learn.

The topics I’m going to cover are:

I’m Ted Thomas, and the past three decades have been good to me. Sellers can make a bundle if they would just use a little patience. If you become a property owner and are willing to finance your sales, this will be of interest to you. You’ll get wealthy.

Want to learn how to purchase bargain real estate? Would you like to buy mortgage-free property for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then take advantage of this FREE Gift.

Many Prospects Want to Buy a House in Installments

Today I’m answering your question, how does owner financing work for the seller? My answer is owner financing works very well, and you’ll make profits quickly on the margins and the interest rates.

It’s amazing how much money can be enjoyed by knowing a small amount of what others don’t know. Knowledge about financing is avoided by most people.

Buyers want instant gratification which means they will pay installment payments, and they rarely worry about how long they have to make them.

Most people desire monthly payments. The total payments don’t matter. The buyers want it now, and they will pay more.

Where to Find an Owner Financing Contract

How does owner financing work for the seller? Sellers who understand owner financing will get wealthy rapidly.

To start with, it’s perfectly legal to sell your own property, and no broker is required. It’s also legal for you to accept installment payments just like the banks, Mastercard and VISA.

Most title companies will have contracts for buying property and for selling property. The title company contracts are already approved by attorneys, local brokers and government offices.

Installment contracts are also available from local attorneys and brokers. Contracts and documents may be recorded at the official public records.

how does owner financing work for the seller who wants to profit

Where to Find Property to Sell as Owner Financed Homes

30-years ago, I discovered an alternative real estate investment called tax liens and tax deeds. This is a segment of real estate that most people don’t know about.

It’s not hidden from anyone. It’s a government administered program also called tax lien certificates and tax defaulted property.

The business came about because many property owners fail to pay property taxes. If the property owners fail to pay, the county government which needs the tax revenue, will have financial problems.

Therefore, the state government legislature authorizes the county treasurer to seize tax delinquent property and resell it to the highest bidder at a public auction, and the revenue from the auction will pay the past due taxes.

I have a free gift for you that will show you how to profit with tax lien certificates and reveal the secrets of tax deed investing. Be sure to get your FREE gift today.

Get Amazing Property Deals at County Auctions

The brilliance of this system is new buyers, that’s you and me, get to purchase property free of mortgages, trust deed loans and other encumbrances for pennies on the dollar.

At over 3,000 county auctions, thousands of properties are sold at discounts of 60%, 70%, or 80% or more off the tax assessed value. This is a huge savings below retail prices.

My student investors buy these bargains for 10 cents, 20 cents and 30 cents on the dollar and resell them at below market prices often utilizing owner financing.

My students buy low and sell low and attempt to do so quickly. To accelerate the sale, they use owner seller financing.  How does owner financing work for the seller in this case? They collect small down payments and installments for up to 10 years. It becomes particularly profitable when they repeat the process.

A Strategy to Sell Owner Financed Property Quickly

To sell we need to announce it to the world, and we put our announcement out on Craigslist, eBay, Facebook Marketplace, the Multiple Listing Service, Zillow, Trulia and every possible electronic site.

Additionally, we place ads on signs on the front lawn and around the neighborhood. All ads and signs will have the words “Assessed value $100,000, must sell, $65,000 auction bargain. Call xxx-xxx-xxxx phone number.”

Meanwhile, every other $100,000 home for sale is bumping heads in competition with the other $100,000 homes and your home is 35% below market.

You may be thinking, “But Ted, you’re leaving money on the table.”

That’s right. You’re 100% correct. However, the world does not know that your purchase price was $30,000 and your selling price is $65,000. This is a significant margin of profit, and your \$65,000 price will attract bargain hunters.

Offering Owner Financing to Buyers with Poor Credit Scores

It gets better. I’m answering the question, how does owner financing work for the seller? Now I’m going to give you an example of how well it works.

Hundreds of would-be buyers are painfully turned away from the bank because of poor FICO credit scores. To the bank it doesn’t matter if they have a good high paying job or if they’ve been employed for 10 years or more in the same job. Banks have rules and standards to run their business. Poor FICO scores do not fit the standards.

As entrepreneurs, we do not follow the rules of the bank. We can buy and sell. We can use brokers or do it ourselves. We can advertise with a professional or do it ourselves. We can go to the title company to get the legal forms. We can control our destiny. The title company will always tell us what is legal and what is ethical.

Bargain prices attract anxious and eager new buyers. We make the rules. We want a down payment of $10,000. The buyer knows the value, and the buyer knows the price. The buyer needs and must have financing due to their poor credit score.

how does owner financing work for the seller who buys tax sale property

An Example of Owner Financing

How does owner financing work for the seller? Very lucratively, as you can see from the following example. Here’s the math.

  • Selling price – $65,000
  • Down payment – $10,000
  • Seller finance – $55,000
  • Terms – 10 years, 120 months at $650 per month plus property taxes plus insurance.

The new buyer will pay you $7,800 each year for 10 years. At the close of 10 years, that’s $78,000 plus the $10,000 down payment, and you’ve received $88,000 when your purchase price was $30,000.

When the final payment has been made, then the owner who financed will transfer the deed (title) to the new buyer.


We hope you enjoyed Ted’s lesson, “How Does Owner Financing Work for the Seller?”

Owner financing is doubly profitable for the seller. Not only does the seller profit from the sale of the property but also from the financing.

By utilizing Ted’s strategy of purchasing mortgage-free properties for pennies on the dollar at tax sales then selling them at a discount with owner financing, you can generate cash flow quickly and collect residual income for years.

If you’d like to know more about tax delinquent property investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.

Learn how to reap huge rewards from tax lien and tax deed investing! Get started today by taking advantage of this Free Gift from Ted. Act now, it costs you nothing and will give you a big head start!

how does owner financing work for the seller by Ted ThomasTed Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

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The Ted Thomas Difference:
  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tat defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

There is a way to make $100K in 12 months from home.

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