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Can the seller have a mortgage on the property and still offer seller financing?
Now the quick answer to this question is yes. The seller can have a mortgage. In fact that’s one of our preferred ways of seller financing is having the property leveraged for an increased return on the investment. And you can watch some of my other videos that talk about the power of leverage.
But that way what happens is when the buyer buys it via seller financing from you, the payment that they make that goes through our escrow company gets paid out to the current mortgage holder, which is your mortgage. And then the difference is then paid out to you.
And so it doesn’t mean that you have to be involved or making that payment yourself, it just means that there’s two mortgages essentially. On is an underlying mortgage that you hold, or excuse me, that the bank holds, they’re your lender. And the other is the note that you hold for the buyer.
So there can be multiple mortgages on the property and you can sell or finance in a way that increases your ultimate return on your investment by a little bit of leverage.
And so, I hope this is helpful for you. If you have questions, or if you’re interested in exploring seller financing, feel free to reach out. We’re happy to help.