Our goal is to address all of your concerns whether you are a first time seller, buyer, renter, or a seasoned real estate professional. We pride ourselves in discussing and addressing all of your questions and we hope that you find our services to be worthy. The Financebyowner.net team.
What is financebyowner.net?
Financebyowner is also referred as Owner Financing, Seller Held Financing, Owner Carry or similar wording, meaning that the owner of the property will, in effect, act as a bank and loan the purchaser all or part of the money needed to purchase the owner's property.
Why financebyowner.net?
In order to sell your property quickly at a competitive market price, FinanceByOwner.net is the solution sellers desires and buyers seek.
What is seller held financing?
Seller held financing is a loan provided by the sellers to the purchasers and the seller is now acting as the bank.
Is seller held financing a new concept?
Seller held finance is not a new concept. In the 60's and 70's it was not uncommon for seller to finance the sale of a home to qualified buyers and in today's market it is making a huge comeback in providing an exit solution to sellers while assisting buyers get a into home ownership.
What is the role of financebyowner?
FiananceByOwner is the bridge between the seller and the tenant-buyer utilizing an agreement for an option to purchase.
What is a financebyowner option to purchase agreement entails?
A financebyowner option agreement is an agreement from the seller and financebyowner to purchase the right to the property at the desired asking price by the seller. This option is then marketed free of charge to locate a buyer or a tenant-buyer to sell or rent the property quickly . This option will be assign to the tenant-buyer for a fee paid by the buyer or the tenant-buyer prior to his or her tenancy of the property.
How fast can financebyowner enroll my property utilizing an option to purchase agreement?
Enrolling your property is immediate, Our process is as easy as 1,2, and 3. Simply upload your property info on our site or you may email it us, and or call. Our housing wanted list is growing daily. Take advantage of the opportunity to sell or rent to own your property today.
What if I have an existing mortgage, can I still participate?
Yes, you can definitely participate. Most of our clients do have an existing mortgages on their property. The monthly payment on their mortgage plays a key factor on determining the monthly payment for the tenant-buyer.
Who will manage the property?
Our team of professional property management companies nationwide will be managing the property to ensure compliance by all parties involved.
What about maintenance and repairs?
If you enrolled your property through our seller held financing program, the maintenance and repairs will be performed by the borrower (tenant-buyer) at their costs. If your property is enrolled through our rent to own program, some, all or none of the repairs or maintenance shall be paid by the tenant-buyer. Note: Seller Held Financing (You are the bank) while Rent to own (You are a Seller-Landlord). We can customize your desired out come.
When do I "the seller-landlord" receive my payments?
This allows our team to deposit and clear the check with ample time to pay the seller-landlord, the mortgage payments, home owners association / condo dues, etc...
Who pays for maintenance and repairs?
With our financebyowner seller held financing, the tenant-buyer pays for all repairs and maintenance. With our rent to own program the repairs and maintenance are normally covered by the seller-landlord unless other wise stated on the lease to purchase agreement.
I am interested. Now What?
Call our office at 703-951-3375 or simply fill out our contact forms or enroll your property on line and an account representative will contact you.
Does financebyowner have other exit strategies for seller?
Yes. Due to our large network of buyers, real estate professionals and investors financebyowner can and will customize an exit strategy for you as you desire.
Is there an enrollment fee for the seller?
There are no enrollment fees for the sellers.
Is there an application fee for the buyer?
There is an application fee for the buyers. This fee varies from $35.00 to $100.00. Note: with our financebyowner program this fee will be credited back you (tenant-buyer). This fee is not refundable.
Is there a Realtor commission involve with my transaction?
With our transaction, there is no realtor fee involved.
My house is listed by a Realtor. Do I have to pay a Realtor commission if I decide to do a financebyowner program?
Review your agreement with your real estate agent. More than likely their commission will be included on our offer or option consideration purchase due to their agreement with you.
Who handles marketing?
Marketing is handled by us. You may continue to market your property with your agent or on your own. The goal is to sell or rent to own the property today.
Who handles tenant-buyer due diligence?
Our financebyowner team and network of lenders and mortgage brokers will be handling the tenant-buyers to determine the length of their terms and qualification. You may refer a loan officer to us for this process should you desire to. We are always in search of good loan officers and loan programs.
What if the tenant-buyer has credit issues such as; foreclosure, short sale, bankruptcy, etc...?
Our tenant-buyers with credit issues are enrolled in our workshops of how to prepare, clean, and maintain their credit score for the path of home ownerships. We are very realistic when it comes to working with our tenant-buyers. We believe that if they cannot buy now, "When" can they buy. This is determined by our lenders and the credit repair companies at the time of qualification then the term of tenancy is put in place. You the seller-landlord will have the final say / approval after reviewing the tenant-buyer application packet.
How does the seller-landlord determine his sales price?
In any real estate market around the world, property values are determined by the demand of the consumers. It is the same in this case. Most of our sellers-landlord desire top dollar for their properties and our tenant-buyers desires a home of their own and we are here to deliver both. This question is best answered as the market dictates the sales price of a property.
How do I "the seller-landlord" price my house to attract a tenant-buyer quickly?
Price the property fairly and price it accordingly. For example: If the house needs repairs and it is in poor condition and you do not want or have the means to repair and do the fixings, then you will receive a fair offer. On the other hand, if you property is market ready and or rental ready, you will get top dollar for it.
What determines the option sales price?
The local real estate market will determine the sales price.
Who determine the monthly payments?
Monthly payments are determined by your monthly mortgage payments, HOA or Condo monthly dues, equity on your house if any, and the market interest rate fee your equity. This is what we call an all inclusive seller held financing.
Who determine the length of the term?
The term is determined of how long you want to keep receiving a monthly income on the interest rate that you are charging. Remember the longer the term the more the principal is paid down by the tenant-buyer hence the more money you make. Terms are from 1 year to 15 years. It depends you, the Seller.
Who determine tenant-buyer acceptance?
The tenant-buyer acceptance is determined by the seller. A completed application packet will be sent to the seller along with a pre-approval letter from a mortgage provider.
What is the financebyowner seller process?
The finacebyowner program will purchase the property from the seller through an option agreement at sellers asking price or negotiated price.
What will financebyowner do to the property?
Financebyowner will then re-sell the property to a tenant-buyer or to an investor that will renovate or improve the property, if necessary, by assigning the option agreement.
What is the financebyowner tenant-buyer process?
The tenant-buyer process consist of the following; an interview, application form submission, acceptance to the tenant-buyer home ownership program, a pre-qualification process with a national mortgage company, an approval of the entire packet by the financebyowner team and the seller.
What determines the tenant-buyer monthly payment?
The monthly payment is determined by the tenant-buyer budget, current monthly expenses, willingness to repair and maintain the property, the desire to become a home owner and not a renter.
Is the deposit of the tenant-buyer refundable?
There are no deposit involved in a financebyowner transaction. The monies paid to financebyowner are non refundable and are credited to towards the purchase of the property.
Is the downpayment by the tenant-buyer refundable?
The down payment is not refundable. The amount paid is credited towards the purchase of the property.
What if the tenant-buyer decided not to purchase the property?
The tenant-buyer will lose all rental credits and the down payment. Financebyowner will market to a new tenant-buyer if the term allows it and or the seller desire to continue the program after the term expires.
What are the responsibility of the tenant-buyer in the financebyowner program?
The tenant-buyer's responsability is to pay the monthly payment on time every time on the 15th of each month, all repairs and maintenance.
What if the tenant-buyer does not have the funds to perform the necessary repair or maintenance during his tenancy?
The seller may perform the necessary repairs and maintenance to the property but the cost such repairs and maintenance shall be added to the purchase price of the sales contract to reimburse the seller.
What are rental credits?
For example; if the tenant had negotiated that $200.00 of his monthly payment shall be credited by the seller to him or her at the time of closing. Hence if his tenancy was 24 months he will receive $4,800.00 worth of credits at the time of closing.
What is an option?
An option gives the buyer the right to purchase the property for a specific price with in a certain period of time.
What is an option considerations?
The option considerations is the amount that the buyer is willing to pay and the seller is willing to accept for the option to purchase agreement to be ratified. This payment is not refundable.
What is the term?
The term is a length of time or the duration that the purchaser have to exercise the option.
What is the typical option to purchase sales price?
The typical cost of purchasing the option sales price from the seller varies from $1.00 to thousands of dollars and the cost of selling the option to purchase sales price to buyers also varies from from $1.00 to thousands of dollars.
Why is the tenant-buyer's sales price higher than the option to purchase price?
The sales price for the tenant-buyer is adjusted due to his rental credits and his option considerations payments to give him additional credits towards his purchase.
What is equity appreciation?
Equity appreciation is defined as the appreciated growth value of real estate from the time of tenancy to execution of the sale.
Who does the equity appreciation belongs?
The tenant-buyer has the right to the equity appreciation on the property based on his agreement. The equity appreciation belongs to the seller in the event the tenant-buyer does not perform in accordance to his agreement.
Can the tenant-buyer request an extension on his or her term or contract and is the seller-landlord oblige to such request?
The tenant-buyer may request such extension if the seller-landlord agrees.
Are the tenant-buyer's rental credits transferrable?
The rental credits are not transferable and are not refundable.
What if the tenant-buyer cannot obtain conventional financing prior to his term expiring?
In the event that the tenant-buyer cannot qualify for any loans to secure the property at closing, the property will be returned to the seller.
Does the tenant-buyer need a real estate agent to work with?
The tenant-buyer may work with a real estate agent as they see fit. Most of our seller-landlords do not have a real estate agent representing them or have a listing agreement with one. The realtor commission or fee shall be added to the option to purchase agreement on the buyer side to be paid at closing.
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