An idea that doesn't always immediately spring to mind when selling your property is that instead of selling it for a lump-sum monetary settlement, why not sell it to your buyer by an agreed instalment plan? This instalment plan can be organised over a mutually agreed timeframe so that you have cash flow coming in each month and your buyer can pay within their budget. The beauty of this is that if your buyer does fail to make their payments, the house remains in your name so you do not lose your asset.
By selling your house in this way, it is you rather than a bank or other financial lending institution that is providing the buyer the means to buy - they will not need to go anywhere for mortgage as it is theoretically you that has become the financier. The majority of the profit that you gain from doing this (it is called house wrapping), is interest and most of the risks of owning the property are passed on to the buyer.
Positive Net Cashflow
When your buyer is paying you more each month than you need to pay on your own loan repayments, you are seen to be in positive net cashflow - this is an ideal situation to be in as you don't really need to think about how the mortgage on the property is made each month. It is a great idea to receive your instalment payments from the purchaser via direct debit.
There are many people who are desperate to own their own properties but for whatever reason can't get a mortgage. This is often because they are self - employed. Banks don't like to take the risk in offering a mortgage to self - employed as they do not consider that it is a safe enough bet that the buyer's business will survive the term of the mortgage. However, often business owners are the most responsible when it comes to money, after all it's their own livelihoods that are on the line if their business fails and what the banks also do not appear to consider that in today's climate, no paid employment is bullet proof safe either.
There have been many concerns about the ethics involved in house property wrapping and this has mainly come about because of the minority of people who clearly are out to gain purely for themselves and not consider the welfare of the property buyer. There are always risks involved and that's why it is of the utmost importance to go to an expert in property wrapping such as myself to ensure that you are getting the best deal.
When a house wrap is done with a win-win situation in mind, rarely are problems created. This technique can offer not only an excellent return for the financier (current house owner), it also provides a fantastic opportunity for the new buyer to finally own their own property when they have probably been turned down so many times before by other lending institutions.
It has to be said though that you should not rush in and try and make these deals yourself until you have had some expert guidance -each situation is different and you need to create the house wrap that caters for both you and the other party involved.
For this reason, I have come up with a unique house property wrapping guide and full one-on-one coaching program that will take you through all the steps needed to ensure that your first property wrap is a successful one. Ultimately this will save you thousands of dollars in the long run.
To Your Success
The Aussie Wrapper