How Do We Buy
Cash Offer
What is a cash offer?
A cash offer on your property means that we will propose to purchase your home without relying on a mortgage or financing
Benefits of Cash Offers?
Fast transaction
Faster closing process with less paperwork and underwriting
Higher chance
Increased certainty of the deal closing successfully
Reduced fees
Reduced closing costs for the seller
The main trade-off is that the pool of cash buyers may be more limited compared to buyers seeking financing.
But for sellers who prioritize speed, certainty, and cost savings, a cash sale can be an attractive option for multi-family property transactions.
Seller Financing
What is Seller Finance?
seller financing for multi-family properties involves the seller providing some or all of the financing for the buyer's purchase.
Benefits of Seller Financing?
Higher Sale Price
Seller financing often allows you to command a higher sale price compared to a traditional all-cash sale. Due to the banks high interest rate, many buyers will not be able to offer full price offer, however, with seller finanace terms, you will be able to receive over value price.
Faster Sale
Properties sold with seller financing terms tend to sell faster than those requiring all-cash or bank financing. Buyers who need the seller financing are highly motivated to close the deal quickly, reducing your time on the market.
Steady Income Stream
With seller financing, you'll receive a steady stream of monthly payments from the buyer over the loan term. This provides you with a reliable income source, which can be beneficial for retirement planning or reinvesting in new properties.
Receive a higher purchase price down the road
After the end of the loan terms, you will generate much higher purchase price then what signed on paper due to the monthly interest received
Maintain Ownership Interest
When you offer seller financing, you maintain some level of ownership interest in the property until the loan is fully repaid. This can give you more control over the asset and how it's managed during the financing period.
Potential for Capital Gains Tax Deferral
Structuring the sale as a seller-financed transaction may allow you to defer capital gains taxes on the sale. This can be a significant financial benefit, especially for high-value multi-family properties.
This arrangement allows buyers to secure financing directly from the seller, often making the process more flexible.
How does it work?
Agreement on Purchase Price
The seller and buyer agree on the sale price of the property.
Down Payment
The buyer makes an upfront payment, usually between 5% and 30% of the purchase price.
Promissory Note
The buyer signs a promissory note agreeing to repay the remaining balance over a specified loan term.
Seller’s Security
The seller retains a mortgage or deed of trust on the property, ensuring their interest until the loan is fully repaid.
Terms of the Loan
The parties negotiate the interest rate, monthly payments, and any potential balloon payment due at the end of the term.
Sub to
What is Sub To ?
Sub-to financing allows the buyer to simply take over the seller's existing mortgage, rather than needing to obtain a new loan. This streamlined approach can make the transaction more attractive for both parties.
