Episode Summary
In
this episode of Get Real Wealthy Season 2, Quentin talks about seller financing.
Quentin
says that seller financing
is one of those great tools that you can use in your toolbox to give you some
financing when you need it. The first thing is to understand what seller
financing exactly is. Oftentimes, when you're buying a property, the owner may
have already paid off that property. They don't have a mortgage on that
property, but you need a mortgage on the property. So, you can ask the owner of
the property carry back a mortgage for you, and they can get paid a specific
interest rate.
He
adds that it is also a way for investors to delay paying the capital gains tax
if they do carry back mortgage on the property. A lot of investors already
understand vendor takebacks, so it's easy for them to implement, but you have
to ask the owner. It is a simple clause and a lawyer can help you out with it. .
If you're dealing with a realtor, and you're not going directly to the owner,
your job as an investor is to educate the realtor. You may have to educate them on how to
use this creative financing tool.
He
adds that you can find seller financing on places like MLS listings. You could
have your realtor send you any listings that have seller financing in there.
as long as the numbers work
on the deal, that's the most important part for you as the investor. Another
way you can use seller financing is through private sales.
Lastly,
rental properties and buildings are the key to finding seller financing. In
conclusion, he says that seller financing and creative financing really can
boost your ROI and boost your returns.
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