| In owner financing, sellers provide short- or long-term | | | | cash-poor to a bank but have assets and income |
| mortgages to buyers, augmenting traditional lender | | | | aplenty. Seller financing for luxury properties is |
| financing or taking its place. | | | | especially in demand. |
| These sellers may be more apt to get an offer and | | | | Sellers who finance can defer capital gains taxes for |
| close a deal quicker. The loan may yield interest and | | | | the period of the note and only pay income tax on the |
| an income stream topping mortgage payments or | | | | interest and principal income they get each year. |
| investment interest rates, and there can be tax perks. | | | | Depending on how long a seller has held a home and |
| Offering financing carries risk. It takes good judgment | | | | the size of the down payment, he may not need to |
| to avoid the missteps big lenders made in the subprime | | | | pay capital gains tax on that part of the transaction. |
| debacle. Sellers should consult experts to help set up a | | | | Rates And Costs |
| loan and maybe a trust, handle documentation, keep | | | | It can run a few hundred dollars for an attorney to |
| records and file taxes. If you're in the Austin area, i | | | | review loan and sale papers. Usually the buyer pays. |
| would highly suggest Forte Properties. They are the #1 | | | | Interest rates, amortization and note periods on these |
| Owner Finance specialists in Austin and surrounding | | | | private loans are set by what the market will bear. |
| areas. | | | | Some undercut bank rates. Others get a premium. |
| Who needs seller financing? The list includes foreign | | | | Usury laws make loans at unreasonable interest rates |
| buyers who may have trouble getting U.S. bank | | | | uncollectible, possibly illegal. |
| mortgages, and business owners or others who look | | | | |