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Copyright © 2006 by Bob Schwartz San Diego real estate broker Certified Residential Specialist
Promotions Unlimited All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. | | Creative Owner FinancingSometimes it can be awkward if you ask a seller to grant you owner financing to buy a home. When the seller carries a portion or the whole purchase price less the buyer’s down payment, the seller offers owner financing. The method of owner financing works in various kinds of markets and is a time-tested method. There are many who want to be ahead in the competition with other houses on the block. There are many who want to sell their property at higher rates than the market value. There are many who want to get a constant cash flow from their property after they have sold their property.
There are many advantages in owner financing. It lets the customer to sell property in good and bad markets. There is an edge in the competition in the markets regardless of the new home construction and increased foreclosures. These cannot lead to an influence on the customer .Owner financing attracts moiré buyers. Creative owner financing can lead to less of price negotiations. The customer can have a consistent flow of money after the property is sold. This is one of the main advantages of creative owner financing. The person makes a transition from owner to the investor when he uses owner financing in buying real estate. Owner financing presents a competitive advantage. The other major benefit is that it presents consistent flow of cash after the transaction. The strategy is time tested and it allows you to get money from the property you sold and then continue to acquire from the transaction even after the property is sold.
The customer can settle his or her own terms in owner financing; these terms can comprise of interest rates and terms of payment. Benefits for all the various parties involved in the transaction can derive from creative owner financing. In real estate owner financing the buyer of the property pays the owner directly instead of through the bank, this way the buyer and the seller involved in the transaction get cash flow continuously. The seller of the property can get a very high price for the property in creative owner financing. You can also get high interest on the monthly payment. The methods used in creative owner financing are ideal for many customers and often benefit everyone.
One of the difficulties of creative owner financing is the buyer does not pay the taxes, the water bill or other such payments. If this is the case, the government can seize the property. The buyer will have to pay the overdue bills. The buyer may get the property back but the bills will have to be paid by him. These are only some of the features of creative owner financing. There are other various features but they are immaterial if these are looked into. The advantages and disadvantages have been mentioned. Creative owner financing is an old procedure to look at modern problems. This makes it unique. 
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