The real estate "bubble" has been big news for quite a while now. With interest rates low and real estate prices high, the biggest question on everyone's mind seems to be "Will the bubble burst?" and "When will it happen?"

I can't tell you exactly when it will happen, but eventually, it will happen. So, what does that mean for the private cash flow industry?

With interest rates low, more buyers are able to qualify for traditional bank loans. With more people qualifying, home sellers are usually able to sell their property fairly easily, even through the traditional means of requiring the buyer to qualify for a loan through a bank or other lending institution.

However, as interest rates start to increase, fewer buyers will be able to qualify for large loans. This will mean fewer potential buyers. With fewer buyers in the market, the laws of supply and demand guarantee that real estate prices will start to decrease as well. Basically, fewer qualified buyers = fewer potential real estate buyers = less demand for real estate = lower pricing on real estate.

What does that mean for you, as a seller of real estate? It means that if you are unable to sell your home through traditional means, you may need to consider less traditional approaches. Seller financing is one approach that can be quite successful in selling your home or property. Why? Because, seller financing provides easy terms for potential home buyers who might not otherwise qualify to purchase your home through more traditional approaches. Easier terms means an easier sell! It also often means being able to sell your home at its fair market value, instead of having to reduce your price in order to sell.

Does this mean that you should extend financing to the first buyer who walks through the door and says, "I want the house". Absolutely not. You need to qualify your buyer just like a bank would. The only difference is that your criteria for qualification do not need to be as rigid as a bank's. You don't care whether the buyer just moved into the state or has changed jobs recently. You don't care whether the buyer is recently divorced. You simply want to make sure that your buyer can afford to make the monthly payments on your home. (By the way, recent moves, job changes, or divorces can all be reasons for being denied financing by a traditional lending institution such as a bank, even when the buyer is able to afford the payments. Banks and lending institutions don't like to see changes in a lender's history.)

Are you interested in offering owner financing to help you sell your home, but hesitant to do it because you need cash up-front immediately after the sale? No problem. If that's the case, you can sell all or part of the note you create when you sell your home and get immediate cash for it. First Class Cash Flow Handlers can help you. We buy and sell seller financed notes. Contact us to learn more.