Private Financing

Private Financing

What is private financing?

In today’s economy many Sellers may have substantial equity in their property and often have the ability to offer private financing.  In a world where it seems to be getting harder and more expensive to obtain conventional Bank financing this may be a solution.  Borrower saves thousands of dollars and avoids the rigid process of being approved by the Bank and the Seller can actually sell their home with residual investment/income.  

Private Financing is when a Seller lends his own money to his perspective Buyer in a form of a mortgage/note, in order to sell his own property.  The Seller acts like a Bank ex. Chase, Bank of America, Wells Fargo, Citibank, etc…  He loans the money with terms similar to a standard mortgage that is secured by the property.   

Why would a seller offer private financing when selling?

A higher price, a good return on your money, a faster sale, the ability to sell a property that is otherwise difficult to sell, or selling the property to a buyer who is unable to secure financing.   Law Offices of Stein and Associates has years of experience in assisting sellers in preparation of the necessary security agreements and other applicable documents required to complete a transaction with private financing.