Real Estate Professionals
One of our primary services is to assist both buyers and sellers of Real Estate achieve their goals by utilizing a variety of financing strategies based on the "Simultaneous Closing" model.
In its most common form a simultaneous closing takes place when a seller him/herself "loans" the buyer a certain percentage of the money the buyer needs to purchase the seller's real estate. Typically this is done when the buyer is not able or willing - for a whole host of reasons - to secure traditional financing for the purchase of the property. The "loan" or "private mortgage" which the seller subsequently owns and can collect regular payments on (from the buyer) is then purchased from the seller by a third party Investor. In this way the seller ends up receiving all the cash for the sale of their property, just as they would have if the buyer had made an all cash purchase of their property.
Basically then there are 2 steps or stages of a Simultaneous Closing:
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Using owner financing the seller sells the property: at the closing a Mortgage Note or Deed of Trust is created between the buyer and the seller.
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Next, at the same closing, a third party Investor buys the Mortgage Note or Deed of Trust from the seller for a prearranged price.
Simultaneous Closings present the buyer and the seller with a number of benefits. For example, they make it possible for the seller to significantly increase the number of potential buyers for their property. For buyers that are not able to secure traditional forms of financing a Simultaneous Closing might just be the only way they can make such a purchase. Both the seller and the buyer typically benefit by not having to deal with certain lending fees/points or the time constraints that are commonly imposed by conventional lenders.
There are many variation on this Simultaneous Closing strategy as well as many risk elements that need to be properly addressed. Done properly these kinds of transactions can be a win-win for all involved.
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Given the current state of the housing market and the increasing demands of lending institutions, the Simultaneous Closing model of financing (in a variety of forms) is sure to become more and more appealing to a growing number of prospective sellers and buyers. |
We offer our services in this area in order to facilitate the best possible transaction for all parties involved. From the initial stages of buyer seller education to the most profitable sale of the Mortgage Note or Deed of Trust.
If you are interested in Simultaneous Closings for yourself or your clients, simply
Click Here
to email us with your basic contact details. We
look forward to providing you with a free consultation.
