Everyone has heard of seller financing. But not everyone understands it, or understands how it can benefit EVERYONE from property buyers, property sellers, real estate agents, investors, and of course, flippers.

The Seller

If you have ever sold a home, or are trying to sell a home, you know that sometimes finding someone who is both interested and qualified can be a hassle, especially if you desperately need to sell your home quickly. By understanding seller financing, you can decide on what terms to sell your home, and often demand a higher price. Seller financing simply means YOU are the bank. Instead of the buyer of your home having to go to a bank, get approved for a loan, get a check, then pay you, you would simply receive payments every month for your property until it was paid off. With the recent "creative financing" courses all over TV and the internet, these types of transactions are bigger than ever. However, agreeing to these terms of payment is not the bottom line. Investors purchase these notes because they can get a great return on their money, and have an investment that is secured by property. So you may decide to use seller financing to sell your home quickly, then turn around, and sell that I.O.U. or cash flow note, to an investor. The buyer gets the home they wanted, you got paid, and the investor is getting a return he wants for his money. You can see how greatly you can benefit by using this type of financing, and if you're anything like me, I don't like banks. I would much rather be in control and know exactly what I am getting because it's on MY terms, not a bank's.

The Buyer

For someone buying a home, seller financing allows someone who might not be able to qualify for a traditional mortgage, to purchase the home he/she would like. But understanding seller financing will allow you to negotiate with the seller to come to an agreement. Often people don't get what they truely feel their home is worth. Seller financing allows you to structure a payment plan that is giving the seller the money they want for their home, while allowing you to pay them directly without credit approval. This technique has been used by investors and home buyers for years as a way to purchase homes and other property they might not be able to get otherwise. Then as a buyer, you can explain to the seller how they have the option of selling that mortgage to an investor and still getting their money. Once they sell it, it's not their responsibility anymore.

The Flipper

No, I'm not talking about everyone's favorite bottle-nosed dolphin. I'm talking about mortgage flippers. This is where you can build a huge source of income without ever investing money of your own. The only costs you have here are for advertising to the mortgage holders. This consist of envelopes, stamps, paper, postcards and a few classified ads. If you can find a way of investing for less than this, let me know, I'd love to hear it. Finding mortgage holders is not hard. There are litterally billions of dollars of new notes created yearly. The first place you can start looking, is where you are right now, the internet. These types of contracts are also recorded in county courthouses all over the country. Go to your local county courthouse, ask for the recorder of deeds, and ask if you can examine the public records. When you find one of these seller financed mortgages, you can simply contact them, explain to them they can sell their mortgage, and gather the information on it. With that information, you can present it to investors who purchase these notes. When you have an offer, then you can arrange for a simultaneous closing in an escrow account. If you're looking to become a serious investor, this is an excellent way to generate cash for other types of investing, because you can litterally start with nothing. That is exactly why I personally started doing this type of investing.

My goal is to help sort out some of the mess when looking into real estate, as either an investor or a home buyer/seller. My website offers an explanation and the resources to further your real estate education. I offer a Note Listing service to purchase mortgages so you can profit from them. http://www.getyourmoney.stlhosting.com