If you are a Charlotte homeowner who has built up 80% or more equity in your property, you may be interested in selling your home with owner financing to a trusted buyer like Helpful Homes. This can be a great option for those who want to receive regular income with fair interest, while not having to worry about the maintenance or taxes associated with owning a property. This means if the plumbing breaks or the roof leaks, you are no longer responsible.
One of the biggest benefits of selling your home with owner financing is the potential tax benefits you can receive. When you sell a property using this method, you may be able to spread out the taxable gains over time, which can reduce your overall tax burden. This can be particularly advantageous if you have a large amount of equity in your home and would otherwise be subject to significant taxes upon selling. These are commonly known as capital gains taxes, and they can be quite costly.
Another advantage of owner financing is the potential long-term profits. By acting as the bank, you can collect interest over the course of the loan, which can be a significant source of income. This can be particularly appealing if you are retired or looking to supplement your income. Take a look at an amortization calculator to see some examples of just how quickly the interest adds additional profits, well above your sales price. Let’s show you a very simple example below of what the first six months of collecting interest look like. This is based on a $250,000 purchase price and a 30-year loan at 6% interest, very similar to a bank loan. We can always adjust these terms to your particular needs. Banks are rich for a reason, interest is a major part of that, take a peek below to see how it may be beneficial to you and your income needs.
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | Mar 28, 2023 | $1,498.88 | $248.88 | $1,250.00 | $249,751.12 |
| 2 | Apr 28, 2023 | $1,498.88 | $250.12 | $1,248.76 | $249,501.00 |
| 3 | May 28, 2023 | $1,498.88 | $251.37 | $1,247.51 | $249,249.63 |
| 4 | Jun 28, 2023 | $1,498.88 | $252.63 | $1,246.25 | $248,997.00 |
| 5 | Jul 28, 2023 | $1,498.88 | $253.89 | $1,244.99 | $248,743.11 |
| 6 | Aug 28, 2023 | $1,498.88 | $255.16 | $1,243.72 | $248,487.95 |
You can see from the chart above, that after only six (6) months of owner financing to Helpful Homes, you will have collected an additional $7,481.23 in pure interest. That amount gets added to your sales price, so it’s easy to see how this can be very lucrative for you as the seller.
At Helpful Homes, we specialize in buying properties in as-is condition, which means you do not have to worry about making any repairs or improvements to your home. We work with trusted real estate attorneys to create a note, which serves as the legal agreement between the buyer and seller. You will receive monthly payments from us, just as you would with a traditional mortgage. We have references and reviews from people just like yourself, that have sold their homes to Helpful Homes with owner financing.
Selling your home with owner financing can be a great option for those who want to receive regular income with interest, without having to worry about the maintenance or taxes associated with owning a property. If you are interested in exploring this option further, we encourage you to contact us to discuss your options and get the ball rolling. We have extensive experience working with buyers and sellers in Charlotte and would be happy to help you navigate this process.