As explained in the last issue, seller financing can be an extremely useful option to sell a house in a slow real estate market. Unconventional private lending is a great way to increase the overall sales closing ratio. When the property owner is willing to “carry back” a note, it is often possible to obtain a higher selling price and reduce the time needed to find a buyer. Plus, creating a note secured by real estate can give the seller a steady, interest-generating income stream for their long-term future.
The Challenge: A Different Demographic
Home owners who are ready to offer a private loan in order to sell their houses are still faced with a stumbling block: how to find buyers in need of seller financing. Most property owners don.t have any experience in finding individuals interested in buying a “high ticket” item like a home directly from the owner. When property sellers work within the established real estate agent process to find buyers and close a deal by “traditional” methods, it is generally safe to assume that the vast majority of these customers will qualify for bank financing. In order to pursue private seller financing to sell a home, however, a property owner will need to attract home buyers who do not have adequate credit to buy real estate – a significantly different demographic.
The key to successfully orchestrating a seller-financed real estate deal is getting the right buyers through the door – just like a traditional property sale.
In order to get motivated buyers interested, the seller will need to use a targeted marketing technique designed specifically for the “unconventional buyer’s market”. The most effective advertising method to tap into this distinctly separate pool of buyers is surprising to some.