Coming to Terms with Financing (Episode 24) S2 E9

Watch on Youtube: https://youtu.be/HG-eRoBpjqQ

There are 15 types of terms available in the MLS. Five are common, and 10 are not — do you know what they all are? We do.

0:35 - What are the terms sellers would accept?
0:45 - The 5 most common terms. Cash, conventional loan, FHA (Federal Housing Administration loans), VA (Veteran's Affairs), USDA (US Department of Agriculture rural loans). 
1:55 - Don't put terms you aren't going to (or can't) accept.
3:05 - Exchanges. There are other "less-common" terms out there. Let's start with "Exchanges." This is a 1031 Exchange that allows the buyer to defer capital gains for tax purposes.
3:50 - Assumptions. Simple assumptions bring the buyer on, almost like the seller is a co-borrower. Qualified assumptions mean the buyer has to qualify for the mortgage. Assumptions are great because in the future, when mortgage rates are higher, these loans become more attractive for assumption.
5:30 - DPA. Down Payment Assistance programs.
6:07 - Commercial financing required. If you've got 5 units or more, you HAVE to go commercial. You can do income-producing property up to 4 doors. Mixed use properties also fall under commercial financing required.
7:10 - Seller Financing. The true wild west of terms. Traditional financing may not touch these buyers, but there's a huge opportunity here. Sellers can really make it worth their while. It opens a lot of options.
8:30 - Lease Options. It's rent to own - monthly or yearly. You have the option to purchase at a set price. But there are un-intended consequences to the seller.
10:12 - Use these options - and make the listing more attractive for it. 
10:40 - Buyers, make sure you know what you're qualified for, and use that information to make your searching more streamline.
10:59 - What did we learn today?
12:12 - Bloopers.

*No Cash deals were harmed in the filming of this real estate discussion.

Please contact us to tell us you love us, you want to hire us! Call or text: 

Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687‬

Lender with Elite Team at Security Home Mortgage: 
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472

A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.