Seller Options
Quick All Cash Offer
Features and Benefits
Just so that we're all on the same page, we are investors. If we are going to offer you an all cash offer then we have to receive a substantial discount. So if your ready and willing to accept an offer like this then your in the right place. We will make an initial assessment of your property, all liens, back taxes, repairs, mortgage status will all be taken into consideration and an all cash offer will be presented to you. If your looking for a full retail asking price, then this is not the option for you.
When to consider an all cash offer from New Mercies, LLC
Features and Benefits
Just so that we're all on the same page, we are investors. If we are going to offer you an all cash offer then we have to receive a substantial discount. So if your ready and willing to accept an offer like this then your in the right place. We will make an initial assessment of your property, all liens, back taxes, repairs, mortgage status will all be taken into consideration and an all cash offer will be presented to you. If your looking for a full retail asking price, then this is not the option for you.
When to consider an all cash offer from New Mercies, LLC
- Foreclosure Avoidance
- Estate Sales
- Divorce
- Separation Agreements
- Debt Removal or Renegotiation
- Refinancing Homes in Foreclosure
- Sell Your Property Without Realtor Commissions
- Resolving Title Issues
- Relocation Assistance
- Bankruptcy
- Over-leveraged Properties
- Judgments or Outside Liens
- Little or No Equity Sales
- Cash Offer Within 24 Hours
- Closings on Your Timeline
- No Real Estate Commissions
- Save Money on Closing Costs
- Workout plans with existing lenders
- Vacant Properties
Owner Financing
Features and Benefits
As the real estate market begins to dip, sellers will need to find more creative ways to sell their home in the Cleveland area. One of the major problems in today’s real estate market is the lack of financing vehicles available to buyers. Buyers with good to average credit find it harder and harder to get approved for the amount of money they would like at an interest rate that they feel comfortable with. Owner Financing provides an easy bridge to close a buyers financing gap. In many cases, the seller can have most of his needs satisfied by an Owner Finance sale rather than a traditional cash sale. Let’s look at these needs one by one.
Highest Price
There is no doubt that a seller can insist on and receive the highest price when offering flexible Owner Financing terms. In many cases, the seller can receive more than fair market value of the property by offering these soft terms. People are always willing to pay a premium for non-qualifying financing.
Cash
Nearly every seller says he wants all cash, but few need it. What the typical seller wants is the most net cash from the deal. Often, the seller has to pay closing costs, title insurance, broker fees and the balance of existing financing. In addition, there may be capital gains tax due to Uncle Sam. In many cases, the sale of a property by an installment sale (particularly a “wraparound mortgage“) will net the seller more future yield than any source from which the cash proceeds were reinvested.
Fast Closing
Nothing holds up a sale more than new lender financing. In some areas of the country, it can take months for a buyer to qualify and close a new loan to purchase your property. Since most standard real estate contracts contain a financing contingency, you may end up back at square one if your buyer does not qualify. Furthermore, if your house is not particularly nice or unique, it may take you some time to even find an interested buyer. Since you are competing with all the other houses for sale, you may need to spend thousands of dollars in paint, new carpet and landscaping just getting the house ready for the market.
In down markets sellers need to use every tool available to sell their home quickly. Quicker sales tend to be more profitable and provide less headaches than chasing a down market. Owner Financing can give sellers the advantage they need to overcome a key purchasing hurdle, opening their property up to hundreds if not thousands of potential Owner Financed home buyers.
Features and Benefits
As the real estate market begins to dip, sellers will need to find more creative ways to sell their home in the Cleveland area. One of the major problems in today’s real estate market is the lack of financing vehicles available to buyers. Buyers with good to average credit find it harder and harder to get approved for the amount of money they would like at an interest rate that they feel comfortable with. Owner Financing provides an easy bridge to close a buyers financing gap. In many cases, the seller can have most of his needs satisfied by an Owner Finance sale rather than a traditional cash sale. Let’s look at these needs one by one.
Highest Price
There is no doubt that a seller can insist on and receive the highest price when offering flexible Owner Financing terms. In many cases, the seller can receive more than fair market value of the property by offering these soft terms. People are always willing to pay a premium for non-qualifying financing.
Cash
Nearly every seller says he wants all cash, but few need it. What the typical seller wants is the most net cash from the deal. Often, the seller has to pay closing costs, title insurance, broker fees and the balance of existing financing. In addition, there may be capital gains tax due to Uncle Sam. In many cases, the sale of a property by an installment sale (particularly a “wraparound mortgage“) will net the seller more future yield than any source from which the cash proceeds were reinvested.
Fast Closing
Nothing holds up a sale more than new lender financing. In some areas of the country, it can take months for a buyer to qualify and close a new loan to purchase your property. Since most standard real estate contracts contain a financing contingency, you may end up back at square one if your buyer does not qualify. Furthermore, if your house is not particularly nice or unique, it may take you some time to even find an interested buyer. Since you are competing with all the other houses for sale, you may need to spend thousands of dollars in paint, new carpet and landscaping just getting the house ready for the market.
In down markets sellers need to use every tool available to sell their home quickly. Quicker sales tend to be more profitable and provide less headaches than chasing a down market. Owner Financing can give sellers the advantage they need to overcome a key purchasing hurdle, opening their property up to hundreds if not thousands of potential Owner Financed home buyers.
Lease Option
Features and Benefits
If you don't need much cash up front ($5,000 - $20,000), the best way to get your full asking price and a higher than average monthly rent for your home is to offer it for sale as a Lease Option. Since you're offering a huge value and attractive financing to assist the tenant/buyer, they tend to be willing to pay a higher sales price and higher than average rent. Tenant/buyers can easily understand the concept of trading price for time and value.
When you Lease Option your home, you receive a non-refundable option deposit. This amount can be as much (or as little) as you wish. You will receive a majority of your profits at closing when, and if, the tenant/buyer exercises their option to buy. You also win if the tenant/buyer defaults or allows the option to expire since the option deposit is non-refundable. You can begin the whole process over again by collecting another option deposit from a different tenant/buyer.
The earnings potential for the landlord/seller is tremendous since a well-negotiated deal will reap profits at every stage of the game.
Here are some features and benefits for the landlord/seller:
Features and Benefits
If you don't need much cash up front ($5,000 - $20,000), the best way to get your full asking price and a higher than average monthly rent for your home is to offer it for sale as a Lease Option. Since you're offering a huge value and attractive financing to assist the tenant/buyer, they tend to be willing to pay a higher sales price and higher than average rent. Tenant/buyers can easily understand the concept of trading price for time and value.
When you Lease Option your home, you receive a non-refundable option deposit. This amount can be as much (or as little) as you wish. You will receive a majority of your profits at closing when, and if, the tenant/buyer exercises their option to buy. You also win if the tenant/buyer defaults or allows the option to expire since the option deposit is non-refundable. You can begin the whole process over again by collecting another option deposit from a different tenant/buyer.
The earnings potential for the landlord/seller is tremendous since a well-negotiated deal will reap profits at every stage of the game.
Here are some features and benefits for the landlord/seller:
- Top sales price, even if demand is low: You attract more buyers who are willing to pay a premium because of the exclusive financing terms and value you're offering.
- Higher than usual rent: Since you are flexible on your financing terms and are offering a tremendous value, you can demand a higher than usual rent.
- Positive cash flow: Since you can demand a higher than usual rent, your positive cash flow will increase.
- Non-refundable option money: When a tenant/buyer executes (signs) a Lease Option contract, you receive an non-refundable option deposit that is yours to keep should they default or decide not to buy.
- Save thousands in fees: Since you are selling your home by owner, you will avoid paying a 5-10% realtor commission which quickly adds up to thousands of dollars. You will also save on advertising costs because your home will be sold a lot faster.
- Highest quality tenants, minimum risk: Because you are renting to tenants who have a vested interest in your home, they think like homeowners and tend to take good care of it.
- No maintenance, no landlording headaches: Tenants who have a vested interest and believe they are a homeowner may feel a "pride of ownership" that encourages them to pay on time, perform routine maintenance and make improvements to your home.
- Tax shelter is held intact: Because you remain on the deed until the option is exercised, you maintain all of the tax benefits of ownership.
- Largest market of buyers: You are marketing your home not only to traditional buyers, but also to renters and investors. These three groups make up over 95% of people whom buy real estate.
- No vacancies: When you advertise your home as a Lease Option your phone will literally ring off the hook. Typical turnover time is days or weeks instead of months or even years.
- Peace of mind: It is safer than conventional rentals because of the quality of the tenants and their vested interest in your home. It also means that someone is living on-site who will watch and guard your home against fire, theft, vandalism, etc.
Subject to the Existing Mortgage
Features and Benefits
We can take your home over subject to the existing mortgage. Which means, we will take care of your payments and maintenance. We will put a tenant/buyer in the home, and help them get financed. At that time, they will be getting the home re-financed in their name.
Unlike working as a Realtor, we are investors. We agree to make your mortgage payments while we find a buyer for the home. So if it sits empty, we can often times make those payments. Also unlike a Realtor, there is no listing agreement and no 6-7% selling commission. Additionally, closing costs which are the responsibility of items together and on a $100,000 home, that cost represents $10,000. Now add in the typical 3-6 month period that it will take to find the buyer and have them get qualified and finally close on the home and you've just made monthly payments on Principal, Interest, Taxes, Insurance, Utilities, Maintenance and Repairs. Remember that if you get a buyer today, it typically takes 45-60 days for them to get financing. Guess who would pay for your home during that period? You would!!. That's 2 more payments you would have to make, and that's if you had a buyer today. What if it takes 6 months?
One of the main problem solvers we can offer is Peace of Mind. Sometimes the hardest aspect of having to move is actually having your home up for sale and your life in limbo. You've heard the saying "Sometimes the not-knowing is the hardest part!" When you approve the paperwork with us, you will know that your payments and home are taken care of so you can start over and have that peace of mind.
We can take care of all the paperwork in about a week. We simply order the title research, and draw up the papers. We can set a date when you can move out and we will take over the home after that.
We will make payments on your loan while our tenant/buyer builds equity and finds their own financing.
The best part is, your loan doesn't even have to be assumable for this to work! Our program works, regardless of the type of loan - assumable, non-assumable, assumable with qualifying, FHA, VA, Conventional.
We take care of your monthly payments, take on all responsibility for the maintenance and upkeep of your property, and liquidate your asset, before it becomes a liability! Now seriously, does it get better that that? As we stated before, our program can work in an situation.
Benefits to Sellers
For you the Seller we thought that we should summarize the benefits of this program. Maybe not all these points apply to you, but most should:
Features and Benefits
We can take your home over subject to the existing mortgage. Which means, we will take care of your payments and maintenance. We will put a tenant/buyer in the home, and help them get financed. At that time, they will be getting the home re-financed in their name.
Unlike working as a Realtor, we are investors. We agree to make your mortgage payments while we find a buyer for the home. So if it sits empty, we can often times make those payments. Also unlike a Realtor, there is no listing agreement and no 6-7% selling commission. Additionally, closing costs which are the responsibility of items together and on a $100,000 home, that cost represents $10,000. Now add in the typical 3-6 month period that it will take to find the buyer and have them get qualified and finally close on the home and you've just made monthly payments on Principal, Interest, Taxes, Insurance, Utilities, Maintenance and Repairs. Remember that if you get a buyer today, it typically takes 45-60 days for them to get financing. Guess who would pay for your home during that period? You would!!. That's 2 more payments you would have to make, and that's if you had a buyer today. What if it takes 6 months?
One of the main problem solvers we can offer is Peace of Mind. Sometimes the hardest aspect of having to move is actually having your home up for sale and your life in limbo. You've heard the saying "Sometimes the not-knowing is the hardest part!" When you approve the paperwork with us, you will know that your payments and home are taken care of so you can start over and have that peace of mind.
We can take care of all the paperwork in about a week. We simply order the title research, and draw up the papers. We can set a date when you can move out and we will take over the home after that.
We will make payments on your loan while our tenant/buyer builds equity and finds their own financing.
The best part is, your loan doesn't even have to be assumable for this to work! Our program works, regardless of the type of loan - assumable, non-assumable, assumable with qualifying, FHA, VA, Conventional.
We take care of your monthly payments, take on all responsibility for the maintenance and upkeep of your property, and liquidate your asset, before it becomes a liability! Now seriously, does it get better that that? As we stated before, our program can work in an situation.
Benefits to Sellers
For you the Seller we thought that we should summarize the benefits of this program. Maybe not all these points apply to you, but most should:
- Rapid, flexible sale of your home - You select the date that you want to move out. We can complete our transaction in 5 days!
- Certainty of Sale - Avoid the disappointment of "selling" your home, waiting 45 days for the buyer to qualify and then finding out the deal fell through for any number of reasons. Then the process starts all over again, but the pressure is really on you now.
- Avoid Sales Commissions - No need to pay a Realtor the typical 6-7% fee.
- You Get Quick Relief from Mortgage Payments - Compare that with a Home Listing that can go on forever!!
- Avoid Typical Closing Costs - Avoid the necessity of paying for Surveys, Title Insurance, Deed Preparation, Courier Fees, Recording Fees, etc.
- Eliminate a Listing Agreement - We provide a Sales and Purchase Agreement; remember we are BUYING your home.
- Eliminate Time Consuming House Showings - You won't have to show your home anymore. On the average, we show your home less than 4 times, nearly always after you've moved out. We find qualified, motivated tenant/buyers.
Buyer Options
All Cash Wholesale Purchase
Features and Benefits
We work with an exclusive network of Residential Redevelopment Companies from around the country, tapping into their lists of Buyers and Sellers and working with them to create a more positive home buying and selling experience for you. It is through this collaboration that we can provide you with rock bottom priced homes and motivated home buyers from around the country.
Through this vast network we buy properties and often at great discounts. Because we acquire so many properties, we are unable to fix and sell every property we come across. Instead of passing on these deals, we often find other investors and leave most of the profit on the table for them. Though we have investors in mind for this option it is not limited to them. Just consider that these wholesale properties are typically distressed and in need of light to moderate rehab work.
You'll have the benefit of working with a professional home buyer. We won't buy a property unless there is money to be made. Knowing this should give you confidence, you're getting a property that even after rehab will still have plenty of equity in it to either use or make a profit on.
All cash means fast closings and quick transfer of ownership
Features and Benefits
We work with an exclusive network of Residential Redevelopment Companies from around the country, tapping into their lists of Buyers and Sellers and working with them to create a more positive home buying and selling experience for you. It is through this collaboration that we can provide you with rock bottom priced homes and motivated home buyers from around the country.
Through this vast network we buy properties and often at great discounts. Because we acquire so many properties, we are unable to fix and sell every property we come across. Instead of passing on these deals, we often find other investors and leave most of the profit on the table for them. Though we have investors in mind for this option it is not limited to them. Just consider that these wholesale properties are typically distressed and in need of light to moderate rehab work.
You'll have the benefit of working with a professional home buyer. We won't buy a property unless there is money to be made. Knowing this should give you confidence, you're getting a property that even after rehab will still have plenty of equity in it to either use or make a profit on.
All cash means fast closings and quick transfer of ownership
Conventional Purchase
Features and Benefits
A conventional sale is a sale where the bank will make a conventional loan in the form of a mortgage to the new homeowner using the acquired property as collateral. Qualified buyers can purchase one of our properties through conventional means. Talking to a mortgage broker or bank and obtaining a conventional, FHA or VA loan to purchase one of our properties.
Features and Benefits
A conventional sale is a sale where the bank will make a conventional loan in the form of a mortgage to the new homeowner using the acquired property as collateral. Qualified buyers can purchase one of our properties through conventional means. Talking to a mortgage broker or bank and obtaining a conventional, FHA or VA loan to purchase one of our properties.
Owner Financing / Land Contract
Features and Benefits
If you wish to buy a home but don’t have the credit and cannot afford the down payment, then Owner Financing is an option you may look out for. Owner Financing or Seller Financing in Cleveland, Ohio is a process by which the seller offers a part or whole of the home purchase price with or without a mortgage on the property. Despite the occasional elevated purchase price and slightly higher interest rate, there are many benefits to a buyer who engages in a Cleveland, Ohio Owner Finance transaction.
Easy Qualification
The buyer, in many cases, prefers Owner Financing to conventional financing because it does not require traditional bank income and credit approval. You may have poor credit because of a divorce or recent bankruptcy. You may be self-employed and cannot prove income or new to your job and cannot meet strict lender guidelines. Even if you as a buyer could qualify for a loan, the rate will be astronomical if you have poor credit. Furthermore, few conventional lenders offer fixed interest rate loans to people with a poor credit rating. As you can see, there are dozens of reasons why a buyer cannot qualify for a conventional bank loan. Owner financing becomes the perfect solution for the buyer.
Credit Rating
An Owner Financed home sale may give you a chance to improve your credit rating by owning a home and making payments timely.
No Loan Costs
One of the biggest benefits for Owner Financed home buyers is not having to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other “junk” fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an Owner Financed home sale.
Fast Closing
A buyer can close and move into an Owner Financed property within days, since there is no third party lender holding up the transaction.
There are a lot of families who want to purchase a home; Unfortunately, the ongoing credit crunch makes being approved for a traditional mortgage loan daunting at best. If you are self employed or on fixed income, or have a few blemishes on your credit report, you can qualify for our Owner Finance program. If you have at least 5% to 10% down and can afford monthly payments, you are 95% approved!
Features and Benefits
If you wish to buy a home but don’t have the credit and cannot afford the down payment, then Owner Financing is an option you may look out for. Owner Financing or Seller Financing in Cleveland, Ohio is a process by which the seller offers a part or whole of the home purchase price with or without a mortgage on the property. Despite the occasional elevated purchase price and slightly higher interest rate, there are many benefits to a buyer who engages in a Cleveland, Ohio Owner Finance transaction.
Easy Qualification
The buyer, in many cases, prefers Owner Financing to conventional financing because it does not require traditional bank income and credit approval. You may have poor credit because of a divorce or recent bankruptcy. You may be self-employed and cannot prove income or new to your job and cannot meet strict lender guidelines. Even if you as a buyer could qualify for a loan, the rate will be astronomical if you have poor credit. Furthermore, few conventional lenders offer fixed interest rate loans to people with a poor credit rating. As you can see, there are dozens of reasons why a buyer cannot qualify for a conventional bank loan. Owner financing becomes the perfect solution for the buyer.
Credit Rating
An Owner Financed home sale may give you a chance to improve your credit rating by owning a home and making payments timely.
No Loan Costs
One of the biggest benefits for Owner Financed home buyers is not having to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other “junk” fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an Owner Financed home sale.
Fast Closing
A buyer can close and move into an Owner Financed property within days, since there is no third party lender holding up the transaction.
There are a lot of families who want to purchase a home; Unfortunately, the ongoing credit crunch makes being approved for a traditional mortgage loan daunting at best. If you are self employed or on fixed income, or have a few blemishes on your credit report, you can qualify for our Owner Finance program. If you have at least 5% to 10% down and can afford monthly payments, you are 95% approved!
Lease Option / Rent to Own
Features and Benefits
If you are in the market to buy a home, you are probably aware of the advantages home ownership provides (tax shelter, appreciation, security, etc). If you are actively seeking homes for sale on a Lease Option agreement, you are either (1) a very smart renter, (2) a very smart real estate investor, (3) not ready to make a commitment, (4) cannot yet purchase a home through conventional means or (5) any combination of the aforementioned.
The Lease Option contract provides you with many features and benefits, but perhaps the most powerful one is the rate at which you accumulate equity. Compare any lender's loan amortization schedule to that of a Lease Option contract and you'll quickly see that the Lease Option contract wins hands-down -- every time. Moreover, the buying power of a Lease Option contract can quickly and easily land you a home that you could only dream of buying the conventional way.
Here are some features and benefits for the tenant/buyer:
Features and Benefits
If you are in the market to buy a home, you are probably aware of the advantages home ownership provides (tax shelter, appreciation, security, etc). If you are actively seeking homes for sale on a Lease Option agreement, you are either (1) a very smart renter, (2) a very smart real estate investor, (3) not ready to make a commitment, (4) cannot yet purchase a home through conventional means or (5) any combination of the aforementioned.
The Lease Option contract provides you with many features and benefits, but perhaps the most powerful one is the rate at which you accumulate equity. Compare any lender's loan amortization schedule to that of a Lease Option contract and you'll quickly see that the Lease Option contract wins hands-down -- every time. Moreover, the buying power of a Lease Option contract can quickly and easily land you a home that you could only dream of buying the conventional way.
Here are some features and benefits for the tenant/buyer:
- Faster equity growth: Equity accumulates much faster (five times or more!) than with conventional financing through a bank or lender.
- Rent money is working towards purchase: Every month a portion of your rental payment (typically $100-$500) is credited towards your down payment or off of the sales price.
- Option money is credited towards purchase: When you sign a Lease Option contract, you will pay the seller an option deposit. This money is your vested interest in the home and will be fully (100%) credited to you when you buy the home.
- Minimum cash out of pocket: When you purchase a home the conventional way, you must pay at least 5% down plus closing costs and prepaid fees. When you buy with a Lease Option, you only pay first month's rent and a small option deposit. This will save you between 25% and 85% every time you buy a home.
- Frequently no down payment at close: Since you have given the seller an option deposit and you have been receiving monthly rent credits, there will frequently be very little or nothing left to pay for a down payment at closing.
- Profits from appreciation: Since the sales price is locked in before closing (as specified in your agreement), any increase in property value will mean that your equity (what you owe minus what it's worth) is increasing in the home.
- Possible sale for a profit: If you are allowed to sell (assign) your option (it will be in your agreement), you may sell it to a third party for a profit.
- Increased buying power: When you buy a Lease Option home, you could put down as little as first month's rent and a $3,000 option deposit. Compare that to a typical bank or lender who requires 5-30% down plus closing costs and prepaids.
- Credit problems okay: Qualification restrictions simply do not exist. You will be approved at the sole discretion of the landlord/seller.
- No lengthy escrows or mortgage approvals: Your approval will be based solely at the discretion of the landlord/seller instead of a lender who can take up to a month (or longer) to render a decision.
- Control of the home: You will be put in full legal control of the home for a specified period of time without actually having to own it.
- No taxes, less liability: Since you do not own the home (yet), you will not have to pay property taxes and your liability exposure will be dramatically reduced.
- Quick move in time: You can typically take possession of the home in a week or less, instead of conventional move in times of one to three months, after your offer was accepted.
- Maximum leverage: You are spending very little (or zero) money to control a potentially very expensive, and very profitable, piece of real estate.
- Time: Before you actually buy the home, you will have 3-24 months (depending on your agreement) to repair your credit, find the best interest rates, investigate the home and research the neighborhood and/or schools.
- Minimal maintenance: Large maintenance problems or any maintenance problems that exceed a certain amount of money can be delegated to the landlord/seller.
- Privacy: Your name will not be on the deed or in the public records until you exercise your option to buy.
- Peace of mind: You will have full control of the home and can maintain or improve it however you wish.
