Owner financing available! You may have seen this advertised, but what does it mean? While you still hold ownership, you can sell your mobile home through owner financing and gain a great deal of profit on your investment. There is commonly a time limit on the loan to allow the buyers time to straighten out their credit issues over a two or three-year period. Should your buyer default, they would have to relinquish their rights to the mobile home. Sellers can make several creative financing arrangements to suit the needs of the buyers, as well as your own. It is advisable to seek legal counsel to ensure that the contract protects both yourself and the buyer in the transaction.
While you may be financing the entire loan for some buyers, others may find they qualify for a conventional mortgage but still fall short of the required downpayment to get into your property. Therefore you could finance only a portion of the transaction. To learn more about providing this opportunity to buyers, we will discuss five owner financing benefits that you can get if you sell your mobile home in Hemet.
Non-Negotiable Price
One of the benefits of using owner financing to sell your manufactured home in Hemet is that you are sure to get your asking price as if you set it in stone. You hold the advantage. In fact, I often charge MORE when people need financing. The borrowers are willing to pay extra for the opportunity to enjoy the benefits that mobile homeownership brings. If mobile home prices drop, you benefit from selling at a profit and gain the interest earned during the life of the loan. If mobile home prices rise, the buyer may achieve an increase in equity when they refinance the property.
Current Cash Flow
The monthly payments towards interest on the loan will add cash monthly to your regular income, which is an attractive benefit of using owner financing to sell your mobile home in Hemet. And the return on your investment is typically higher than with most fixed-income investments. As the downpayment is negotiable, you’ll receive an extra cash boost when the buyers close. You can even negotiate periodic payments to help the buyers meet your demand for the downpayment of up to 20 percent or more over time. I recommend asking for a large down payment of 30% or more to make sure you are covered in case they stop wanting to pay the lot rent.
Quick Closing
One of the benefits of using owner financing to sell your mobile home in Hemet is that you can skip all of the red tape associated with traditional mortgages. This speedy process means your mobile home will sell and close fast, which is a plus to buyers who are excited to make a move from renting to homeownership right now. The ability to close in 30 days or less may even make your mobile home stand out among many to a buyer with an urgent need to move.
Quick closing also includes marketing your mobile home the right way. So, here are 5 useful tips that can help you market your mobile home effectively for a quick closure.
Buyer Pool
By offering seller financing, you open the ability to purchase to a whole new market. Having more potential buyers for your manufactured home is an excellent benefit of using owner financing to sell your manufactured home or trailer in Hemet. As buyers are entering the market, all too many may now find themselves with less than perfect credit. This status prevents them from financing a new mobile home through conventional lenders as they are unable to meet the stringent qualifications for loan approval. This underserved sector of potential homebuyers is where you can step in as a mobile home seller and offer a beneficial solution to you and the buyer.
Are you still confused whether to hire an agent or sell your mobile home directly to us at Mobile Home Dreamin? Take a look at these handful of benefits before finalizing your decision.
Mobile Home Dreamin fully understands the benefits of using owner financing to sell your mobile home in Hemet. If you would like to learn more, Mobile Home Dreamin is happy to answer any questions or concerns you may have, with absolutely no obligation. Call Mobile Home Dreamin at (951) 783-2611 or send us a message today!
F.A.Qs
1. What are the benefits of seller financing to the seller?
Seller financing allows the seller to potentially command a higher sale price and can attract a wider pool of buyers, particularly those who may have difficulty securing a traditional mortgage. Furthermore, the seller earns interest on the loan, creating a steady stream of income over time, and may also benefit from deferring capital gains tax by structuring the sale as an installment sale.
2. What is the main reason a seller will agree to an installment sale?
The primary reason a seller agrees to an installment sale is for the tax benefit of deferring capital gains tax. By receiving payments over multiple tax years, the seller can spread out the recognition of their gain and potentially keep the income in a lower tax bracket each year, thereby reducing their overall tax burden compared to receiving a lump sum.
3. When might owner financing become more attractive to sellers?
Owner financing becomes more attractive to sellers in a slow real estate market or when credit is tight, as it makes their property more appealing by offering buyers an alternative to traditional bank loans. It is also appealing when the seller does not need a large lump sum immediately and instead desires a stable, long-term income stream from the interest payments.