Private lending sells homes

Golden Rule “He who has the gold rules”

What are you earning on the money you have in the bank? Not much? Here is a solution: If you are selling property and will take your money and put it in the bank just change your strategy. Buyers are having a difficult time securing financing today. That is especially true of the self employed. As a seller you could offer terms to the buyer and be the bank for them. You would earn a lot more than the 1/2% the bank is paying these days. And your investment is pretty secure. You have the property as collateral.

Buyers are willing to pay not to use traditional bank financing. The interest you will earn may be much more than market interest rates for mortgages. It is not unreasonable for a seller to ask for 2-4% over the current market rate.

Not only will you earn more, but you will increase the chance of selling your property because you make the money available for the buyer.

This may also be a good investment even if you are not selling anything. You could be a private lender and earn high rates of return instead of leaving your cash in a bank.

Payments for these arrangements are made through the account servicing department of a title company. They track the payments and provide statements. The buyer /borrower pays the fees.

In the event of a default, you get the property and keep all the payments that have been made along the way.

Jerry Germansen, eXp Realty Associate Broker, 928 632 3906