Carry-back financing, also known as seller financing, occurs when the seller of a property provides a loan to the buyer to complete the property purchase. This arrangement can be beneficial in situations where traditional mortgage financing is difficult to secure.
Cash equivalent in real estate refers to converting the price of a property sold with either favorable or unfavorable financing into the price the property would have sold for if the seller had accepted all cash in the transaction.
A Contract for Deed, also known as a Land Contract, is a financing arrangement wherein the seller retains legal title to a property until the buyer completes all payment obligations.
An installment contract, also known as a land contract, is a legal agreement in real estate transactions where the buyer agrees to make regular payments to the seller in exchange for the right to occupy and use the property, with full ownership transferred only after all payments have been made.
An installment sale is a sales method in which the seller receives payments over time and reports a portion of the capital gain to tax authorities as payments are received, thus spreading tax liabilities.
A Land Contract is a real estate installment sale arrangement whereby the buyer can use, occupy, and enjoy the land, but the seller retains the deed and title until all or a specified part of the purchase price has been paid.
A real estate acquisition strategy where buyers use minimal or no cash down payments, often relying on seller financing, existing loan assumption, or other creative financing methods to achieve maximum leverage.
Owner financing, also known as seller financing, is a real estate arrangement where the seller provides a loan to the buyer to purchase the property, bypassing traditional mortgage lenders.
A mortgage provided by the seller to the buyer in part payment of the purchase price of real estate. It serves as an alternative or additional financing option for buyers who may not qualify for traditional loans.
Seller financing, also known as owner financing, involves the seller providing a loan to the buyer to help facilitate the purchase of a property when traditional third-party financing may be expensive or unavailable. This method can be used to bridge the gap between the purchase price and what the buyer can immediately finance through other means.
A type of real estate transaction where the seller accepts guaranteed periodic payments over a specified time period in the future instead of receiving the entire sales price at the closing. The buyer usually pays a discounted lump sum to purchase an annuity that ensures these periodic payments to the seller.
A Vendor’s Lien, also known as a Purchase Money Mortgage, gives the seller a security interest in the property sold until the buyer pays the full purchase price.
A wraparound mortgage is an innovative financing tool that includes an existing underlying mortgage within its structure, facilitating real estate transactions by streamlining payment processes. It features a consolidated loan combining both old and new debts, circumventing the traditional need for two separate mortgages.
