Have you considered seller financing when it comes to selling your multifamily income property? Here are some reasons sellers should consider seller financing.
Attract More Buyers
This is perhaps the most important reason to offer seller financing. In order to get the best price and terms for the multifamily income property that you are selling, you need to attract as many interested buyers as possible.
Get A Higher Price
Bank lenders might not place the same value on your multifamily property as you do and thus not lend money to a prospective buyer. You might be able to get the price that you want if you provide the financing and take the mortgage.
Many investments do not provide steady income. You can negotiate an interest rate amenable to you and the buyer that provides you with steady fixed income. By the end of the loan, you would have got your principal and fixed income during the term.
Bank lenders tend to have a long underwriting process and must perform due diligence. You can sell your multifamily income property much faster if you provide the loan.
Watch out for the last post in this series when I take a look at a multifamily income property for sale that offers seller financing. I go through the numbers, such as cap rate and the gross rent multiplier, before I provide some analysis into the options available due to the availability of seller financing.