The fastest way to sell a property in Dallas / Fort Worth, where the property is owned free and clear, is through an Owner Financing sale.
An Owner Financing sale involves the seller creating a loan for the buyer to buy the property with. If the seller owns the property free and clear, the loan can be created with a simple note. If the seller already has a loan on the property, the loan payments can be assigned, using a mortgage payment assignment sale, or a new loan can be created using a wrap-around mortgage sale.
Owner Financing Sale Example
– Current Appraised Property Value: $200,000
– Existing loan(s) payoff: $0 – owned FREE AND CLEAR
– Sales price: $210,000
– New Loan: $10,000 down, $200,000 balance, Interest Rate: To Be Negotiated
In this example, the property is sold at a premium price by creating a loan that is made by the seller and given to the buyer. Because the property is sold with financing, it will generally sell FASTER and at a PREMIUM PRICE.
The exact terms, including the interest rate and monthly payment are negotiated with the buyer. In general, properties sold with financing will demand premium interest rates (2-6%) above what lending institutions offer (to those that can get loans). Most or all of the down payment will go towards fees and closing costs.
Dallas Property Investors can manage this entire process for you by contracting to buy your property from you, creating the loan and all necessary paperwork, and then assigning the contract to a buyer that would like to buy a property with owner financing.