Infographic: Owner financing pros, cons


An alternative for “unloanable” buyers to overcome the stiff underwriting rules of tight-fisted lenders is to find a cash-rich seller looking to make a deal.

In an owner or seller financing deal, the seller agrees to act as the lender and finance the property. The buyer pays back the loan according to agreed-upon terms with the seller holding the property as collateral for a loan.

The alternative real estate transaction strategy has its risks for both sides of the deal, but owner financing can be a win-win transaction for the buyer and seller when executed with a sound contract and a clear understanding of the pros and cons.

Mouse over and click the infographic below to learn more.

About the author

A DeadlineNews.Com Silicon Valley Contributing Writer, with a penchant for the quick, story-telling capability of infographics, Mark K. Hicks is broker/owner of The Seabrooke Group in San Jose, CA. Hicks, who takes a "client for life" approach to business, has more than 20 years real estate experience, including creative financing, foreclosure acquisition, probate sales and tax-deferred exchanges. Network with Hicks on LinkedIn.

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