How does Owner Financing work in Georgia?

There are many uncertainties in the market. But you still have to think about the sale. You may be late with your mortgage (you owe more than you are worth). The truth is, with tighter credits and tighter budgets, selling a home for cash has never been easier.

If you are interested in owner financing or are wondering how it works, this article will walk you through what you need to know. What is owner financing?

Owner financing is a real estate transaction where the homeowner (you) authorizes the buyer to make monthly payments. Owner financing is also known as seller financing or creative financing. But you may be wondering, "Why should I consider selling my home with an owner loan?"

Owner financing allows the buyer to own the home and the seller to sell it quickly. It is basically a win-win situation.

Many people buy homes from people who want to sell real estate and earn extra monthly income. Some homeowners want cash flow from their property but don't want to manage their tenants. For example, suppose their home is $ 150,000 and their current monthly payments are $ 900 per month. They now have $ 90,000 in mortgages.

A typical trade goes something like this: You give a house $ 170,000, even if you know it's $ 150,000. We offer them $ 1100 per month with 0% interest. (So ​​we don't mess with consumption, we overpay for the property so we can make extra money.)

If you sold it through a broker for $ 150,000, you would lose $ 9,000 in brokerage fees alone and make a net profit of $ 51,000.
$ 150,000 x 6% commission = $ 9,000
$ 150,000 - $ 9,000 = $ 141,000
$ 141,000 - $ 90,000 (mortgage payments) = $ 51,000
If the owner sells the $ 150,000 home with a $ 175,000 loan, you can sell the home and earn more.

There are no brokerage fees, so you can make a profit as soon as you pay off the loan.
$ 175,000 - $ 90,000 = $ 85,000
In this scenario, that's a $ 34,000 difference. 

How does landlord financing work in Georgia?
To sell a home in Georgia through owner financing, you need to know how to sell your home. 

    1. Loan information

First, you need to check your loan details. You need to know things like loan balance, monthly payment amount, and HOA amount (if applicable).
Check the correct loan balance. If you owe $ 10,935.34, instead of saying "something like $ 110,000", keep this information handy.

 For this information, contact the bank where you took out the loan and ask for the repayment amount, repayment amount, and monthly interest.

2. Real estate valuation

Before selling your home, you need to know its value. Note that the Zillow Zestimate is not the golden rule for house value. Zillow Zestimate examines the average number of homes sold in the neighborhood. This means that they represent new and old creations, variations, and properties.

The way to know the true value of your home is to evaluate it. You can have a home valued at around $ 400. This will give you an idea of ​​the value of your home in its current condition.

Knowing the true value of your home will help you sell it faster because you can charge the right price when you sell it with owner financing. This way you avoid trying to sell for months.

3. Finding the owner finances the buyer

Our Atlanta property uses Facebook and Google Ads to find tenants to buy our home. We spend approximately $ 1,000 on advertising to find qualified renters for our properties. However, it is possible to find a buyer without spending any money.

 

First, find out who the buyer you are looking for is. Do you want to sell your home to a tenant to own and manage it yourself, or is it totally inefficient and use creative financing to sell your home to an investor who specializes in buying and managing real estate?

If you're selling to a buyer-tenant through Seller Finance, you should check out Craigslist and Facebook Marketplace. These forums are free to post real estate properties, seller financing details, and conditions for those wishing to sell their properties.

If you want to sell to an investor, not many investors are good at financing owner deals, know the law, and can expect payouts in 5-20 years. You need to make sure that the investors you work with are trustworthy and will likely start a business within five years. If you don't, your landlord's loan agreement will be broken, and you'll end up paying your mortgage, and won't get any payments.

 

Search for "We buy houses + Suwanee" on Google. This means that if you live in Atlanta, searching for "We Buy Houses in Georgia" will produce a list of investors. Find reputable companies on the first page of search results.

The investors featured on this page have been active for many years. (It takes years to reach number 1 on Google.) This means they are more likely to stay active longer. Find a company you like, get in touch, and ask if they have experience with Owner Finance in Georgia.

4. Sign a contract

Creative fundraising is creative. But essentially all owner financing transactions are the same. Investors offer you a deposit and receive monthly payments. Cash Home Buyers uses a third-party mortgage services company.
A typical homeowner loan agreement looks like this: we have reached an agreement with the homeowner on the amount of the down payment, the amount of the monthly installments, and the number of years of installment.

These numbers are determined by the market. In other words, put things that can put a good family on the property so that your home investment is safe and reliable.
After accepting the terms, sign the contract. Bring your property to the attention of rental buyers by advertising in our database or on Google.

Once we find a buyer, we will work with a third-party loan service company to make monthly payments. (The loan service company will then make the monthly loan payments on your behalf.)
Then set a deadline for the property and seal the house. simple. If something goes wrong (for example when a tenant stops paying), we step in and make the payment on your behalf. This way you make sure you never miss a payment. Our goal is to provide reliable long-term solutions.

5. collect the prepayment
I have cash in hand here. Home Buyers offers sellers a down payment on the purchase of an owner-financed home in Georgia. After completing the procedure at the law firm, pay a deposit to the seller.
With this deposit, you can pay off your debt or move to another home. The deposit depends on the owner's price, conditions, and financing conditions.

We know that entrusting a tenant with the role of the owner of a property is irrelevant. We need to make the deposit reasonable for them so that their family can afford it.

The cheaper the down payment, the more opportunities you have to find a good relative somewhere in the house. Finding the right family is important. Because we want you to be proud of owning a home, managing a property, and paying over the years.