Seller Financing:
How To Offer It
Safely & Efficiently
Article by Tim Houghten
Photograph of Sarah Montes,
Executive Director of Texas Pride Lending
S
eller financing is trending.
The big question is: How can
investors navigate this strategy
safely, efficiently, and optimize
profits in the process?
Owner financing of real estate ap-
pears to be on the rise again, and
may continue to soar in popularity for
several years. Yet, real estate investors
face fresh challenges and uncertainties
in the legalities of this type of private
financing, all while being under more
pressure to be efficient and competitive,
and to stay isolated from risk.
Realty411Guide.com
THE NEED FOR SELLER
FINANCING IN 2017 & BEYOND
The prevalence of seller financing dipped after the
market came roaring back and cash buyers saturated the
market. Now many investors have capital tied up in equity,
and all cash buyers are declining as a share of the market,
according to the latest data from NAR and RealtyTrac. At
the same time, hopes of President Trump creating a new
era of easy borrowing for regular home buyers haven’t
materialized. At least not yet.
Meanwhile, home prices are high, interest rates are
trending up, trust in banks and institutional mortgage
lenders remains at dire lows, and the rental market is very
competitive. That means investors hoping to resell their
properties or turn them into cash cows need to have other
strategies and tools at their disposal. Buyers who want to
take advantage of the current market, or to kick high rents
to the curb, must look for seller-financed options.
PAGE 72 • 2017
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