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Owner Carryback Financing |
Experienced
real estate investors know that you must understand owner carryback financing if you are to stay in the game for the long term. You cannot always depend on conventional sources of financing. They know that when you sell, you can
- get top price by taking terms rather than all cash,
- Sell faster to a larger pool of prospective buyers
- defer taxes now on any gain by using an installment sale,
- receive higher interest rate than if you put after-tax proceeds from a cash sale in another investment, and
- Receive monthly income secured by property you know.
But, they also know that when you buy, you can
- Often get an effectively lower price based on negotiated terms,
- Buy faster and without all the paperwork of conventional lenders,
- Take loans "subject-to",
- Often get a lower interest rate, and
- Chance to further discount in the future.
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