REALTY411 Magazine - A FREE Real Estate Magazine for Investors! REALTY411 - A COMPLIMENTARY MAGAZINE FOR INVESTORS - Page 72

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. 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 sell W"f6VBF2tRs"( "#p&UtTDr6