| Posted by: loanuniverse Mar 31 2003, 11:40 AM |
A little more about my position on seller financing:
Over the weekend an email from a visitor mentioned that she had considered asking for seller financing until she read my financing commercial real estate and my real estate financing example.
I want to make clear that I am all for seller financing. However, I am against buyers thinking of the achievement of financing as the goal of the transaction. Financing is nothing but a tool to make it possible to do the transaction. Your primary consideration when buying income property is the kind of return that you can get from the property. I can remember a couple of conversations with friends where I would ask questions like: How are you going to rent that? , How are you going to fix that? or How are you going to pay that? and all they could keep mentioning was the fact that the seller was willing to finance. Do not fall into that trap.
Nevertheless, Seller financing can be very useful and with a properly motivated seller it can be more advantageous than third party financing. You could get a higher loan-to-value, a better rate and easier qualifying.
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