Benefits of Owner Financing

by Tiffany McCoy / The Brooks Team

Imagine attracting a broader pool of buyers who might not qualify for traditional loans. With owner will carry, you can do just that. Owner financing is becoming an increasingly attractive alternative, offering flexibility and convenience that can be particularly beneficial in the competitive Las Vegas real estate market.

What is Owner Financing?

Owner financing, also known as “owner will carry”, is a non-traditional method of buying a property that essentially allows the seller to act as the lender. Typically buyers receive a mortgage from a bank, which then gets repaid over time with interest. The main difference is who finances the purchase.

Benefits of Owner Financing for Sellers:

By providing financing to a buyer, sellers can expand their pool of potential buyers. It often leads to a faster sale and gives the seller the flexibility to customize payment plans that suit both their needs and the buyers.

Owner financing can also command a higher sale price, as sellers are providing a valuable service to the buyer. Additionally, sellers receive regular payments from the buyer, providing a steady income stream. From a tax perspective, owner financing allows sellers to spread out capital gains taxes over time, rather than paying a lump sum. Finally, owner financing can simplify the closing process, reducing costs for both parties. By offering owner financing, sellers can create a win-win situation, where they benefit from the sale, and buyers gain access to a home they might not have otherwise qualified for.

Benefits of Owner Financing for Condo-Hotels

New to the concept of condo-hotels and how they work? We've already explored the ins and outs of condo-hotels in a previous blog post. Feel free to check it out [here] to get a detailed understanding before diving into the benefits of owner financing in the context of Las Vegas condo hotels.

The Las Vegas market presents unique opportunities for owner financing in the condo-hotel sector. With high demand for condo-hotels driven by the thriving tourism industry, financing challenges due to traditional lenders' stricter requirements, and growing popularity of condo-hotels as an investment and ownership option, owner financing can be a win-win solution for both parties.

Traditional Loans vs. Owner Will Carry

Going the traditional loan route means a borrower must first meet lender requirements. Depending on the seller, it may be more flexible for the buyer when it comes to credit and income expectations. Higher upfront costs like closing costs, down payment, and additional fees should be considered when choosing a method as a buyer.

At the Brooks Team, we are the leaders in owner financed high-rise transactions. To make the most out of your sale, contact us today for a free consultation.