What are the advantages and disadvantages to owner financing?
There are many advantages and a few disadvantages to owner financing. As a potential seller or buyer you should know the benefits and potential pitfalls of both. Owner financing is a very valuable tool. This is an option many sellers and buyers will often discard without giving it any serious thought. This could be a mistake. For the Seller The greatest asset to owner financing is that it allows many potential buyers consider your property that would be left out by asking cash or by expecting them to get a loan through more conventional means. This can greatly increase your prospective pool of buyers thereby making your property more likely to sell, and more likely to sell quickly. Many buyers who may be interested and can easily afford your property may have problems that make it cumbersome to obtain a loan conventionally. They might not have the large down payment normally required by banks. They might be afraid of the intimidating process of financially qualifying. Perhaps they have
There are many advantages and a few disadvantages to owner financing. As a potential seller or buyer you should know the benefits and potential pitfalls of both. Owner financing is a very valuable tool.This is an option many sellers and buyers will often discard without giving it any serious thought.This could be a mistake. For the Seller The greatest asset to owner financing is that it allows many potential buyers consider your property that would be left out by asking cash or by expecting them to get a loan through more conventional means.This can greatly increase your prospective pool of buyers thereby making your property more likely to sell, and more likely to sell quickly. Many buyers who may be interested and can easily afford your property may have problems that make it cumbersome to obtain a loan conventionally. They might not have the large down payment normally required by banks. They might be afraid of the intimidating process of financially qualifying.
