Do you own a multifamily and are thinking about selling? Selling the traditional way (through an agent) will give you access to some buyers. However, if you’re asking, “how do I sell my building with owner financing in Chicago IL” then you’re making a smart move that will give you access to many more buyers! Keep reading to find out how…
Introduction to “How To Sell My Building With Owner Financing In Chicago, Illinois”
When a homeowner sells their home the traditional way (through an agent), the buyers are typically retail buyers who are trying to get a mortgage to buy a house that they plan to live in. In some markets, there is a lot of these kinds of people but in other markets, not as much. Real estate agents generally work with these kind of “pre-qualified” buyers who can get a mortgage through a bank.
However, this method of selling is not without its problems. For example, sometimes you have to wait to see if a buyer can even get financing (and sometimes the financing falls through so you’re forced to keep showing your house to find another buyer).
If you want to increase the possibility that you’ll sell your home, and expand the range of possible buyers who can buy, here’s a little-known strategy you might not be aware of… sell your multifamily with owner financing also known as seller financing.
Owner financing is when a buyer skips the bank and buys directly from you. Essentially, you become the bank! Just like a bank, you get an up-front deposit or a down payment. You will hold a note on the property and then you get monthly payments that pay off the amount owed. In most cases, you hold the title until the property is fully paid off, at which time the title would transfer to the buyer.
Benefits of selling with owner financing
- It opens up the number of buyers because now you’ll be able to find buyers who might not be able to get a traditional funding.
- It gives you cash flow since the buyer will need to make monthly payments to you (just as they would need to pay regular mortgage payments to the bank).
- It protects you because even if the buyer stops paying, you still own the asset!
- And unlike owning a rental, there isn’t a lot of property management since that will be the responsibility of the buyer.
Are you thinking, “how do I sell my building with owner financing in Chicago Illinois”? Start by deciding how much you’d like to get each month for your property.
There are many different ways to sell your multifamily property and in this blog post, we shared with you how to sell with owner financing. Selling with owner financing isn’t for everyone but if you want more exposure to buyers, plus some cash flow, plus plenty of protection, then selling with owner financing might be the right option for you.