Kansas City, MO, May 14, 2019 --(PR.com
)-- Today, Mid-America Association of Real Estate Investors announced that the Note Queen, Dawn Rickabaugh will be the guest speaker at the June 11th monthly meeting speaking on Seller Financing and Notes.
“Some with low and middle income are having a hard time getting mortgages because the loans they are applying for are too small. Lenders have the same expenses in a small or large mortgage and just find it unprofitable to offer loans under $70,000,” said Kim Tucker, founder of MAREI. “Further, we often see people in our industry who don’t have a W-2 job that struggle to qualify for a loan due to being self employed, who seek alternative ways to finance investment property. Seller Financing of Real Estate is an alternative for these home buyers to be able to purchase a home, a rental property or other real estate.
What is Seller Financing?
Seller Financing is when a seller becomes the bank (the beneficiary) by acting as a lender to finance all or part of the sale of their own property. The seller is literally “carrying back,” or “carrying paper,” on the property being sold.
Instead of a buyer giving the seller a down payment and getting a loan from a bank for the balance, the buyer gives the seller the down payment and the monthly payments. The seller receives payments according to the terms agreed to in a Promissory Note, which is secured by a Deed of Trust (in California) against the seller’s property until the note is paid off.
Seller Financing applies to all types of real estate: homes, land, mobile homes on land, apartment buildings, condos, office buildings, farms, commercial, industrial, and warehouse properties to name a few. Seller Financing is also frequently used in the sale of businesses and certain items considered personal property: cars, boats, airplanes, and mobile homes in parks.
Why Would Anyone Offer Seller Financing?
For many real estate investors who offer seller financing on their homes for sale, they use it as a way to defer capital gains, maximize their sales price, and as a way to create ongoing income with out having the hassle of managing a rental property. Many owners of homes will also agree to sell their home with seller financing because they are either able to sell the home for more than they would have been able to otherwise or they want the interest income that the note would provide that far exceeds what they local bank would offer on the same amount of money.
Join Them to Learn More
Join them at the June 11th MAREI meeting at the Holiday Inn located at 8787 Reeder Road in Overland Park from 6 to 9pm. Come to Network, Meet Sponsors, and Ask Questions from 6 to 7 and stay for the presentation at 7 to 9. Members of MAREI and 1st Time Guests can attend at no charge when they pre-register at www.MAREI.org.