Look Who Is Helping Buyers - The Seller!

Robyn Friedman writes about real estate for the Wall street Journal. Recently, she wrote about "seller financing" from the perspective of real estate professionals. Here are some highlights:

* High mortgage rates are making seller financing a more popular option for home buyers.

* According to an analysis by Realtor.com as of May 2023, just 1.04% of all U.S. active listings mentioned some type of private financing. ( Remember, we are a niche market!).

* Real Estate Professionals are reporting that they are increasingly seeing an interest in seller financing for transactions involving residential properties due to the rise in interest rates.

* By giving buyers Title upfront, sellers face significant risk when they provide financing. If the buyer defaults, they may be forced to foreclose, a daunting process that took anywhere from 104 days in Wyoming to 2,601 days in Michigan in the 2nd quarter of 2023. ( Source, Attom). Note: 1st time noteholder to a note buyer: "If he defaults, I'll just take the property back."

* "I underwrite it as if I am a bank. I want to have a reasonable expectation that the borrower will pay me back. I require a down payment of at least 20% and will only consider seller financing if the buyer pays full price or more."...David Dweck, private investor of single family homes in Florida and North Carolina.

Feel free to contact your note professional and pick his brain before you make any decisions on your seller finance situation.