Seller Financing and Real Estate

Depending on your individual circumstances and overall real estate investment goals, seller financing may be a great option for you. Seller financing refers to the process of having the person selling the real estate also provide financing.

Seller Financing Real Estate

Market performance is a key indicator because, if the real estate market is doing well and banks are lending significant money for mortgages, then this may be a less attractive investment option. On the other hand, if banks are reluctant to lend money and the market is slowing down, that may the right time to explore your options.

Know the Advantages and Risks

Like with any investment, there are always advantages and risks to explore, and the same is true for seller financing. One of the biggest advantages of this option is that you, as the seller, can often charge a higher interest rate. This means you may be able to make more money from your property than you originally invested. The major risk associated with this approach is the potential for borrower default.

To determine if this strategy is ideal for you, first learn how to really analyze the market trends.

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Joe Fairless