Due to the recent credit crunch in Latvia and global economic problems many potential buyers are experiencing problems obtaining bank financing. Taking the existing situation into account, management of Shoreline Investments has created the sales strategy which is particularly valuable and adapted for the current real estate market conditions, protecting investors from losing money and providing profit from their investments.
What is Sellers Financing?
A home-financing technique in which buyer borrows from the seller instead of, or in addition to, a bank.
Benefits of Sellers Financing
Getting the property sold
The most obvious benefit and the one which most sellers are looking for is the ability to sell their property in a down market.
Getting a better price
Buyers who have trouble qualifying for conventional loans may be perfectly happy to pay more for a house that is available to them using Sellers Financing.
Creating an income
When a seller provides their own financing they have the opportunity to take the profits the bank would have made and put it in their own pocket.
A well-structured agreement will provide protection from default risk. In fact, such an agreement will often make sellers hope their purchaser stops making payments, because if the purchaser defaults, foreclosure becomes possible. In such a case, the seller will be entitled to keep any down payments and monthly instalments the buyer has paid up to that time, then turn around and sell the home again - for the full market price - to a new buyer!
Broader market of buyers
“Flexible sellers” broaden their market of potential buyers, which could help facilitate a quick, full-priced offer.
Our clients are owners of old Soviet time apartments who are willing to sell and acquire a new apartment in a new development and buyers with cash available for down payment but who are experiencing problems obtaining mortgage for new apartment.
Am I qualified for Sellers financing?
If your answers are YES to any of these questions below you are qualified:
- I am an owner of apartment in a new development
- I already have a mortgage
- I don’t have a mortgage as I bough it cash
- It costs me money and I must sell as soon as possible
To receive an answer to the question – ‘How much I can sell for and how much I will receive as profit?’ please contact our sales manager.