When selling your home I’d like to introduce you to two offer types to local Minnesota Investors. Those are the all cash offer and the terms offer.
Investor buyers will present two offers to you like this as a split-test knowing that either one will work for them, but often only one will work for the Minnesota home seller.
The investors create a gap of contrast with two completely opposite offers to find out if the price or the flexibility of terms is more important to you first, and then the conversation can evolve from there.
The investors do this because the psychology of the contrast actually makes it easier for the seller to force themselves to think about making a decision. It’s a direct way of hearing two possibilities, clarity of choice.
It’s narrowed down to only choices to make it easier on The home sellers emotions because often you need to sell quick as-is
Cash Offer on your Minnesota Home you are selling fast as-is
Let’s go over the cash offer first. This offer is usually accepted because the home loan needs to be paid off, or the home needs far too much in updates or fixup with and the home seller isn’t going to hire and pay contractors themselves, and often doesn’t have the money.
When your house needs this much work often it can be embarrassing to list the home with an agent and when you do the potential buyer will get financing and their lender isn’t going to lend money on a property that doesn’t pass the lenders inspection and is seen as a risk to the lender.
This leaves the Minnesota home seller with a lot less potential buyers and this far fewer options resulting in taking whatever cash offer that they can get. The rehabber buyer is putting up money, time and risk, so they expect to make a nice profit.
Sell your Minnesota Home on Terms to reach more buyers that can’t get bank qualifying often due to bad credit
Subject To Existing Financing- With this way of selling the investor is going to buy and get the deed and start taking over the payments based on the financing that’s already on the property. Typically little upfront and some equity is preferred.
WrapAround Mortgage- A second mortgage held by a lender who collects payments on it and the first mortgage from the borrower. The lender makes the payments to the original mortgage holder.
Purchase Money Mortgage- A purchase money loan is a loan issued to the buyer of a home by the seller. It is also called seller financing or owner financing.
Owner Financing- This goes by many names and the seller may or may not have a mortgage on the property and would allow payments over a period of time. There is usually a fixed interest rate and a balloon payoff date.
Seller Financing- The seller usually gets a better price on terms when they are willing to sell with seller financing, the same as owner financing and some of the other terms. The less the seller asks for as a down payment the more they’ll be interested.
Seller Carryback– Seller carryback financing is when the seller of a given property acts as a lender for a buyer on the sellers property. … A seller carryback is a means of getting a parcel sold particularly if a conventional bank will not offer the full amount that the buyer needs to close the sale
Contract for Deed– Sell your Minnesota Home on a Contract for deed for our local buyers I’ve done a lot of marketing to get contract for deed buyers based on some local programs, but whenever we have an opportunity for a Minnesota Home Seller to add inventory for the line of local buyers with a down payment the better. Contract for deed sellers sell with or without a loan on their property.
Lease Option-I would say a lease option is one contract with the lease and option together as one. Where they reference each other.
Lease with the Option- I would describe a lease with option as a lease and an option as separate and if the lease is violated or terminated than the option is null in void. The option discusses the price and date and term of when that price is good for. It’s a unilateral agreement meaning that the buyer had first right of refusal, but doesn’t have to buy the property
Lease Purchase- I’ve know a lease purchase like a lease option where the purchase agreement is filled out upfront, so it fills more official as a contract now.
Rent to Own- This is a very popular term as it’s understood from a renters perspective who just wants to own someday and get financing someday and what’s to start building equity now before getting financing.
Back in 2003 I was busy putting together rent to owns, but these days the investors that I know that to either work with motivated sellers, or you can check out the buy a Minnesota contract for deed program article I’ve written with a 10-20% down payment.
