IS OWNER FINANCING A GOOD IDEA FOR THE SELLER?
Plenty of real estate investors owner finance their properties, but is owner financing a good idea for the seller? Find out if this could benefit you.
Everyone worries about the future and if they’ll have enough money to live well when they don’t have steady paychecks coming in every two weeks.
Today I’m answering your question, “Is owner financing a good idea for the seller?”
In today’s world, answering questions can be hazardous. Everything is challenged and controversial, but here comes your answer.
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IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – PLANNING FOR YOUR FUTURE
As the population becomes older, we have more and more citizens that have not planned for the future and may not have saved enough money, and they are very concerned.
Recently, the government has created many new social programs and has inflated the money. Not just social security programs but also many programs for immigrants and young people.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – SOCIAL SECURITY
In other segments I’ve discussed social security. The system currently signs on new recipients every day.
The Social Security Administration admits only 3 workers are contributing to each persons’ social security benefits, and soon it will be down to 2 workers. That system will need massive changes.
Currently in the United States, over 60 million people receive checks from the social security administration. Those checks are delivered monthly.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – SUPPLEMENTING SOCIAL SECURITY
So let’s answer your question, is owner financing a good idea for the seller? My answer is, in my opinion, yes.
For those who have worked at a job for decades and will receive only a small pension plan and a social security supplement, owner financing may be the answer to generate enough income when added to social security and pension plans.
Depending on when you are doing the research and who you are listening to or watching on TV, you’ll be exposed to many opinions. My take on this is from a conservative standpoint.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – SECURING YOUR FUTURE
Half of all Americans feel they are starting too late in life to have a future of their dreams. They don’t have a pension plan waiting for them, and their savings accounts are small.
Despite what you might think, it’s not too late for you.
I’m going to reveal a brief example that most anyone could copy, learn and then execute.
Many start with small accounts. However, once they complete this proven process, they repeat the process again and again. You’re about to see and learn how they do it, and you can copy it and do the same.
Only a half a dozen transactions like you are about to review will make you financially comfortable and free of money worries.
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IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – A SUCCESS STORY!
My example is real. The people are real, and you could follow in their footsteps.
Senior citizens Sonny and his bride Marcia were both concerned about their financial future. They’re healthy, vibrant, in good spirits, and they are willing to work and take care of themselves.
They’re willing to learn new things and interested in generating new money and controlling their own destiny.
They realize that the pension plans which they originally created will not pay for the lifestyle they’ve learned to enjoy. They resign themselves to learn to be coachable.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – ALTERNATIVE REAL ESTATE INVESTMENT
For decades, I’ve been involved in a business that’s an alternative to regular real estate.
The average person in the marketplace has heard a great deal about real estate, and they rarely believe what they are seeing.
They watch with interest and are entertained with house fixer upper shows, always a pretty girl and dozens of contractors transforming average homes into mini mansions. That’s not the business that I’m going to explain.
This is not traditional, however it does involve some purchasing and sales. Here’s the background.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – TAX DEFAULTED PROPERTY
Local governments have a challenge collecting property taxes, and the state legislatures and county governments have taken action to standardize the collection process.
The county needs money to pay for police, firefighters, and school teachers, patch the holes in the road and help the local hospitals.
If the property owner won’t or doesn’t pay taxes, the board of supervisors or county commissioners will authorize the county treasurer/tax collector to seize those delinquent properties, and after confiscation, sell the properties at a public auction and use the money to pay the back taxes.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – TAX DEFAULTED PROPERTY AUCTION
Our senior citizens Sonny and Marcia, after learning how, decided to attend an auction in the state of Michigan. They were surprised and delighted to find properties. Some were junk. Many were used and abused, and some were move-in quality.
In previous classes, they had learned that these properties would be sold at auction with the bidding starting at only the amount of the back taxes and sometimes sold for 10 cents or 20 cents on the dollar.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – BARGAIN REAL ESTATE
Sonny and Marcia made a small investment in a single-family home. They didn’t bet the farm.
They only invested $8,000, and within 60 days, turned the $8,000 into $38,500. During those 60 days, the United States celebrated Thanksgiving and Christmas which means many were on vacation.
Is owner financing a good idea for the seller? Sonny and Marcia proved the answer is yes.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – A SIMPLE BUSINESS
Everything you learn from this point on, you could do yourself with a minimal amount of training.
Keep in mind, these are not young college graduates. They are middle-class, hard-working people who realize social security is supplemental and pension plans are working out to be the same.
They realized there is no giving up and that they can control their lifestyle with a simple business.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – INSTALLMENT SALE
Getting back to our example, they started slowly. They viewed the properties at the auction. The value of the property they bid on was approximately $50,000, and it looked decent. It was not pretty.
They used techniques known to all and a number of techniques they learned in class, electronic advertising, Craigslist, Facebook Marketplace. The media they used attracted many offers because they advertised installment sales.
Thousands of people are challenged because they do not qualify for bank financing. Installment sales are a blessing for these credit challenged people.
Here’s a couple that’s never been involved in the business of real estate, yet they are earning a fast profit on a slightly used and abused property. They are completing all the functions quickly.
Yes, the property needs some clean-up. They hired people to do that. They hauled the trash away, and all of this added $4,000 to the original $8,000. So now they’ve invested $12,000.
Ugly signs on the front lawn and electronic advertising attracted a buyer.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – PROFIT
They sold and earned a $23,500 profit. Certainly not retirement money, however, they’ve come close to doubling their investment.
They learned to use a simple contract which any title company in America will give you if you’ll just do business with them.
Bottom line, they earned a nice profit in less than 60 days.
IS OWNER FINANCING A GOOD IDEA FOR THE SELLER? – SELLER FINANCING
They advertised seller financing as acceptable. The new buyer wanted seller financing, and the title company helped them arrange the proper documents.
The seller financing generated an additional $15,000 in income over the next 10 years. Amazing!
Now they’ve completed the work once, and they have extra income which will total $38,500 very close to $40,000 over the next 10 years.
Life is a marathon. It’s not a sprint. Owner financing really works for everyone involved. Sellers make money quickly, and they get paid monthly. If they don’t get paid, they can sell the property and do it again.
CONCLUSION
We hope you enjoyed Ted’s lesson, “Is Owner Financing a Good Idea for the Seller?”
Whether your objective is financial independence or alleviating retirement concerns, you can generate massive income from real estate investment when selling via owner financing, particularly if you know how to buy deep discount real estate.
You make your money when you buy – that’s when your profit margin is established – and you can purchase real estate for pennies on the dollar at a tax defaulted property auction, also called a tax sale.
Tax defaulted properties are sold at county auctions, and the starting bid is around the amount of the back property taxes owed.
When you consider that property taxes are a small percentage of the assessed value of the property, you can see how it’s possible to pick up real estate for 10, 20, or 30 cents on the dollar at a tax sale. On top of that, you also get the property without a mortgage.
If you sell the tax defaulted property you purchase using owner financing, you can generate cash flow and residual income streams for years to come. Also, it’s an easily repeatable process, so you can keep doing it over and over again to secure your financial future! You just need to know how.
If you’d like to learn more about investing in tax delinquent property, there’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal one-on-one coaching.
Get started today at no cost with Ted’s FREE Master Class, that reveals the incredible opportunities available in tax defaulted real estate. The class is only about 1 hour of streaming video and contains life-changing information! You can’t afford to miss it!
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