Courtesy of Cash Out $ervices
(Cash Out $ervices provides the funding for the Seller Assist Program)
How does Cash Out $ervices charge for their Services?
We never charge you or the buyer with up-front fees. We are
paid only when and if your home sells using our Seller Assist Program.
We charge the equivalent of 6-7% of the sales price of the home. This fee
is simply withheld from the funds we pay you at closing, so you are never out of
pocket any money. Because you will sell your home at full-appraised value and
never have to negotiate with the buyer on your price, you still net at closing,
more than you would from selling by any other method. If you are not satisfied
with the offer for the owner financing you do not have to go through with the
transaction. You stay completely protected throughout the transaction.
What makes the Seller Assist Program work so fast?
You are able to offer “Owner Financing” in your advertisements and on your lawn sign. This will more than quadruple the number of buyers who need help from owner financing. They will actually compete most of the time to buy your home. Often times, so many people call on your ad that you must have showings to groups of buyers at a time. This spurs on the competition and helps sell your home fast and at full-appraised price.
Why do so many buyers call on my home using your Seller
Assist Program?
These potential buyers have some sort of credit or income problem. 2/3 of the population has had their credit destroyed from such things as a divorce, medical problems, and job changes. They cannot get financing through traditional mortgage companies or banks. Many times these people have fixed the problem and make great risks for us despite the fact their credit is going to be a problem for years to come. We know these and other types of families such as self-employed people deserve homeownership and will make their payments to us faithfully. We have helped hundreds of these type buyers every year.
Do I have to hold on to the Owner Financing for any
amount of time?
No, we will purchase the Note and Mortgage at closing. You never have to collect payments, nor are you responsible should the buyers stop making payments down the road. There is no recourse back to you from the transaction. This does not include any type of property disclosure neglect on your part.
Must I use your service if someone is already approved
with a mortgage company or bank?
No, you are not under any obligation to use our program should you sell using a traditional method. We hope you sell your home as soon as possible no matter what method you use. But you will find that our program will create the interest and in-home showings that can make any type of buyer put a contract on the home faster than any of the old traditional ways. Usually a mortgage approved buyer will want to negotiate your asking price down, but if you can live with the offer then great. At the same time he may be competing with a buyer wanting to buy your home using our program. The Seller Assist program can only help make the best possible deal for you.
What are the interest rates for these “Problem Credit” buyers?
Most of the rates you will receive from us will be between 10.50% and 12.50%. We will give you an interest rate that can be placed on your owner financing that is more than competitive with other lenders who specialize in problem credit buyers. We will give you a rate that will maximize the cash for the note you sell us. Since you are the seller and you are creating the note; any interest rate you decide to put on the note may still be marketable to us but will incur a greater discount. We will give you the best possible note structure for any given buyer. Most owner financing will be purchased at 93% of the face amount of the loan. You get to keep the down payment. Some buyers with even harsher credit may need your assistance in taking back a small 5% or 10% note, but whom you go with and the note structure is entirely up to you.
What is the down payment expected to be?
We like to see 5% to 10% down. We have many different programs within the Seller Assist Program for each type of Problem a buyer may be facing. The down payment must come from the buyer and none may come from you. However, the buyer may borrow any amount above 5% from relatives etc.
What costs are involved in working the Seller Assist Program?
There are three charges that you will be responsible for paying as you go; but can be reimbursed at closing from the buyer.
1) The first amount will be the classified advertising cost associated with placing our ad. Most sellers only need run the ad for 2 weeks before a buyer is found. In some harder to sell areas you may need to go 4 weeks. Allow about $200 for the ad.
2) Credit reports are paid as they are pulled at a cost of $30.00 each. To make the process faster you can deposit $90.00 with Cash Out $ervices to allow instant credit report access. In this way you can know within a few minutes of taking a credit application and offer what program the buyer will fall into. The fee is credited against your deposit as each report is run. After you have run 3 reports you should deposit an additional amount until you have a buyer you are satisfied with. You may also use your own source for pulling credit, it must include all three bureaus and have each bureaus risk scores included. You may also just mail in the Loan Application and Pre-Approval with $30.00 money order to Cash Out $ervices, and we will pull the report. The buyer pays this $30.00 fee at the time they place a contract on your home. You can collect this amount as a separate amount from the earnest money if you wish. If you are using our contract is allows you to simply subtract the fee from the earnest money check. If you elect not to have the earnest money check made out to you from the buyer, you can have it made out directly to the Title Company. If this is the case you should have the buyer make out a separate check for the credit report. Have the check made out to you and you cash it at your bank.
3) A full Appraisal must also be ordered. We can use several of the nationwide appraisal firms. We recommend GAC because of their company’s extra mile they go to insure fast appraisals and have demonstrated a better working relationship with you should you have an concerns about the appraisal. We nor any agent or affiliate of Cash Out $ervices receives any fees from GAC as all appraisal must be arms length transactions. We do many appraisals through GAC and they have opened a special account to process your appraisal with out a ton of questions and registration with them. Simply call the 1-800 number and ask to place an order for an appraisal through account 90-2500. They already know what type and kind of appraisal we require. They will arrange to collect their fee from you COD. They accept Money orders and credit cards. The charge may vary according to distance from a local office. Usually the fee is $300 to $350. They contract with a local appraiser who is familiar with you city and home prices. They have affiliate appraisers in all areas of the US.
If I already have an appraisal can you use it?
We may be able to use it, or we may need to have a review made on the appraisal. Let us know as soon as you have a buyer ready and we will proceed from there as to what we maybe able to work out.
Don’t Buyers usually pay for the appraisal? Why should
I pay for it?
It is in your best interest to have an appraisal because in our program you can sell your home at its highest value, the appraised price. If you do not, and one is not absolutely required until you have a buyer in place, you could suffer a great financial loss. For every dollar you don’t know that your home is worth, you lose. We have seen homes that even Realtors have done comps on that came in $10,000 higher than expected. Once you price your home and a buyer places a contract on it, it is too late for you to change it. Your appraisal could come back in much higher but the buyer will hold you to the original contracted price. Saving even $2000 to $5,000 is worth the investment of $300 now. You will also find that using our contract allows you to be reimbursed for this fee from the buyer at closing. It is part of the buyer’s closing costs.
I already have my home listed with a Real Estate Agent, can this still work and will it cost me too much?
If your agent has not found a buyer for your home within 30 days, then you may find the agent asking you to consider a price reduction. Before you do that you should try every possible means to get your full price and that means using our Seller Assist Program with the real estate agent. Instead of reducing your price, after the appraisal comes in you may find you need to increase your price. That’s right, increase to the real appraised value. Once you have the home priced at the right price, have the real estate agent include owner financing into the MLS listing. Have it placed on the first line of the Information Box on your MLS listing page. The real estate agent will also include it in another area automatically so that other realtors searching the MLS for owner financing offers will come up with your listing. This will automatically increase the number of showing your home has. As an example, as of this writing I have a current home listed with a realtor and he has had 8 showings in the last two weeks alone. The last two weeks we are talking about has been the week before and after Christmas 1999. Usually the worst two weeks of the year. That’s how powerful offering owner financing can be on a MLS listing. We have had many reports from other home owners showing 40 or more calls on a home in just one day.
As far as extra cost go, you have already agreed to pay about 6% to the real estate agent, our fee is an additional 6-7%. This is still a better situation than allowing a price reduction on your home, which will usually cost you 15-18% with the real estate agent’s commission included. You may still have one more upside advantage, with the increase in showings, you still may find a buyer who has his own mortgage financing in place and you will only incur the real estate commission and any price negotiation with the buyer which is minimized by the fever of competition from other buyers. So whether you have your home listed or not, you will save money and time in selling your home with our Seller Assist Program.
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