How Seller Financing Works and How it Benefits You in Jacksonville North Carolina.

How Seller (Owner) Financing Works and How it Benefits You in Jacksonville North Carolina.

A simple overview of how to use owner financing to your advantage.

In seller or owner financing, the seller takes on the role of the bank. Simply put, when a buyer makes a mortgage payment (installment loan) they make payments directly to the lender or seller.

This allows the seller to collect monthly payments and never receive a call about the property when it needs attention. Do you call Wells Fargo when the toilet needs fixed. No, you don’t. And neither would your buyer contact you about that. That’s just one major benefit.

The seller and buyer initially sign a Promissary Note (which contains the terms of the loan). They record a mortgage (or “deed of trust” in North Carolina) with the Register of Deeds. Then the buyer pays back the note over time, typically with interest.


Seller Financing in Jacksonville North Carolina Varies in Length.

Seller Financing in Jacksonville North Carolina 5 Year Term
Seller Financing in Jacksonville North Carolina 10 Year Term
Seller Financing in Jacksonville North Carolina 15 Year Term
Seller Financing in Jacksonville North Carolina 30 Year Term

These notes vary in length of time: for example, payments amortized over 30 years but with a balloon payment due in five years. Or the buyer is wanting to put $5,000 down with 0% interest and pay a purchase price of $80,000 amortized over 30 years with a 10 year balloon payment. This means the seller would have a Total Purchase Price of $85,000. Less the $5,000 down payment and would finance the buyer at $80,000 for the next 15 years. Monthly payment received of $222.27 a month and at the end of the 15 year term a balance of $40,230.87 would be paid in full.

Balloon payment is the remaining balance due at the end of the term. The theory is that, within a few years, the home will have gained enough in value or the buyers exit strategy will have improved so that they can refinance or sell the property at a later time.

From a seller’s standpoint, the timeframes are very practical. Most sellers can’t count on having the same life expectancy as a mortgage lending bank, or the patience to wait around until the loan is paid off. In addition, the terms can vary for what the seller considers important: Purchase Price, Down Payment, Monthly Payment or overall net income with interest.

The best opportunity to offer a seller financing is when the home is free and clear of a mortgage. Typically if the sellers mortgage balance is low enough it could be paid off using the buyer’s down payment.

How to Make More Money With Seller Financing in Jacksonville North Carolina.

The best way to make the most money over time is to be the bank and seller finance your buyer if you property is free and clear of any mortgage or liens. When banks lend to you there is a principal and interest amount built in to your payment schedule. See graphic on how much money goes toward principle and interest over time. Try this Amortization Schedule Calculator and play around with the numbers to better see how this plays out.

In this graphic you see a typical mortgage through a bank. They charge you interest over time. This means you’ll pay nearly twice as much over time compared to your purchase price at the time you bought the house. You can use this same strategy to work FOR YOU…

As You can see, you would be paying $143,739.01 more over a 30 year term. This could be going into your pocket instead.

Use Seller Financing to Take Advantage of “Forever Income”.

So in a nut shell, if YOU are holding the note for your buyer you can collect interest on the payments. Imagine if you could collect something like this for the next 10, 20 or 30 years. You’d have “forever” income. Your buyer would be paying you more over time with no worries of Property Insurance, Repairs, Tenants, Toilets or Termites. Just sit back and get paid every month like the banks do!

This process is simple, fast, and uses no Realtors or Agents. This means no commissions, no fees, and no closing costs to you! We pay all the closing costs with every property we buy. If a cash offer isn’t working for you, we have this option available as well!

If you have a freee and clear property in Jacksonville North Carolina then this may be of “interest” to you.. yes, pun intended! By allowing US to be your buyer we take care off:

  • Closing Costs
  • Insurances
  • Repairs
  • Tenants
  • HOA Fees
  • All Responsibilities as a Homeowner

If you are ready to get your offer with seller financing we are ready! At NC Fair Cash Offer Terms can be formed that best fits your needs and results in a FAST WIN-WIN. Our speedy Attorneys can close Seller Financing and Cash Closings within 7 days! Fill out the short for below to get your Cash Offer or Seller Financing Terms today!

100% Guaranteed Offer.

Simply Call Us (910) 500-0058 Or Fill in The Form Below For Your No Obligation "As-Is" Cash Offer!
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Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

100% Guaranteed Offer.

Simply Call Us (910) 500-0058 Or Fill in The Form Below For Your No Obligation "As-Is" Cash Offer!
  • This field is for validation purposes and should be left unchanged.

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