Get MORE money for your property!
Using seller take-backs

By Douglas L. Iles

If you are like most people selling their property, then you want to get as much
money as possible.  Regardless of whether you plan to sell it yourself or work with
a real estate professional, seller take-back financing is a surefire strategy that can
help you sell your property more quickly for top dollar.  Seller take-back financing
has long been an extremely popular technique with knowledgeable sellers of real
estate because it has proven to be an effective way to increase profits.  Aside from
enabling a seller to receive a higher sale price, seller take-back financing is usually
a very safe, easy, and extremely profitable method when structured properly. 

By way of a quick review, a seller take-back loan is created when the seller of a
property agrees to “lend” the buyer a certain amount of money toward the property
purchase price.  In doing so, the seller, “takes back” the amount in the form of a note. 
This seller "take-back" note is secured by property.  In turn, the buyer agrees to
repay the seller the amount of the loan, including interest, over a period of time.
Let’s take a quick look at how this technique works and how it helps the buyer and

In this example, Mr. and Mrs. Green place their house on the market with an asking
price of $250,000; a price that is totally appropriate for existing market conditions.
Mr. and Mrs. Brown, in the market for a home, see it and fall in love with it.  As a
result, the Browns make an offer to the Greens for $225,000.  The Browns also indicate
that they will only be able to make a maximum down payment of 20% of their offering
price ($45,000).  Since the Greens have an interested qualified buyer capable of
making a substantial down payment, they do not want to lose the sale.  But they also
do not want to take less than their asking price.  To help close this deal quickly, the
Greens make a counteroffer to the Browns involving a seller take-back loan.  Instead
of reducing the sale price, the Greens propose to assist Mr. and Mrs. Brown.  To
complete the purchase, the Greens offer to give the Browns a seller take-back loan
of $205,000.  This is the difference between the asking price of $250,000 less the
Brown’s down payment of $45,000.  The Greens outline favorable terms which include
a fair and competitive interest rate.  The result is an easy-to-make monthly payment
and a comfortable payout period.  The Browns, realizing an opportunity to afford their
“dream house", accept the proposal and the deal closes quickly.

As you can see from this example, both the buyer and seller derived substantial
benefits from using the seller take-back financing technique.  The best deal always
benefits all of the parties involved.  In this case, the buyers were able to purchase the
house without having to increase their down payment.  The buyers also greatly bene-
fited by working out favorable repayment terms on the seller take-back loan that fit
their repayment budget and timetable.

The seller benefited by selling the house quicker and receiving the asking price which
is more than they might have received in a traditional transaction.  In addition, the
seller received additional benefits by creating a steady monthly cash flow in the
amount of the payments.  As an added benefit, the seller will receive many additional
profits above the selling price in the form of interest earned on the seller take-back loan. 
As always, the owner has the option of selling the loan at any time for a lump sum of cash.

In summary, using seller take-back financing techniques not only helps sell a property
for more, but it also benefits both parties in ways that help close the sale quickly.  If
you are planning to sell a property and would like to learn more about how you can use
seller take-back financing effectively, then please contact
Beneficial Brokers, LLC TOLL-FREE at 1-800-603-9940. 

Douglas L. Iles has resided in Mansfield, OH since 1988.  He has been married to
wife Dawn since 1989 and has a 26-year old daughter Brittany, a 25-year old son Chris,
and grandsons 6 and 8 years old.   Beneficial Brokers, LLC was established
in July of 2006 as well.  

Currently, Beneficial Brokers and WCS Real Estate Solutions are working together to assist
REAL ESTATE wholesale buyers and homeowners.

***And, as referred to in this page, the option to create a private note for
the homeowner is ALWAYS available.

Doug Iles
Beneficial Brokers, LLC
Creative Home Seller Strategies
26 Gibson Avenue
Mansfield, OH  44907-1316
TOLL-FREE:  1-800-603-9940
Cell phone:  419-545-4446