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By Kathy Kennebrook

Using a work for equity plan to sell houses or owner financing to sell properties is a good plan for getting homes sold quickly in any market especially if they need rehab. So let’s first talk about owner financing properties.

I believe that owner financing is another good way for you to sell your properties quickly and for long term profits. Many sellers do not offer owner financing so this is another good way for you to drive potential buyers to your properties even in a down market. I suggest simply advertising that you are offering financing assistance for your buyer. Many times you will have a buyer who has a significant down payment; they just can’t qualify for a loan for whatever reason at that moment.

Usually if I owner finance a property, I at least want my buyer to have halfway decent credit or at least workable credit that can be cleaned up over a period of time. I have a wonderful broker in place that helps my buyers clean up their credit issues. You can sell your properties using owner financing one of two ways. If you sell a property that has an underlying mortgage, you could do a wraparound mortgage with your buyer.

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A wrap around mortgage is simply a mortgage that wraps around the underlying note. I would absolutely suggest using an attorney to put these deals together for you so it is done correctly and in a way that allows you to foreclose out the note if your buyer stops paying.

So how does a wrap around mortgage work? What this means is that your buyer pays you a mortgage payment each month on your property and you pay your underlying mortgage. The difference between these two payments is yours to keep as monthly cash flow as long as taxes and insurance are handled.

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If you have used an attorney to do the wrap around mortgage for you, your buyer is going to be responsible for the taxes and insurance on the property and will provide you with proof that these have been paid.

For more information on owner financing properties and wrap around mortgages, visit Kathy Kennebrook’s website at for even more information on buying and selling properties quickly in any market.