What can you do to stimulate sales in an 'all cash' market?
Ask us about private mortgage opportunities!
Banks are very reluctant to issue mortgages.
Sellers need to move, retire, or downsize.
Buyers see a 'once in a lifetime' opportunity - but may not have enough cash or don't want to allocate the entire purchase price to one investment.
Sellers are finally willing to consider extending a private mortgage.
While this financing option has been common in mainland markets for decades - it has rarely been used in Puerto Rico since bank mortgages were readily available.
Especially with retirees who invested in real estate as part of their retirement portfolio - a private mortgage can ensure a steady cash flow in retirement.
Of course any purchaser has to have sufficient cash to pay-off any existing mortgage - so it is not for everyone. But in the case of owners who have no mortgage, or have paid off most of their mortgage - this can be an attractive option. There are additional costs that need to be negotiated, since a good real estate attorney is critical in order to protect both sides of the transaction. But it can be a 'win-win' proposition where buyers are able to purchase in a 'frozen' market and sellers received regular payments secured by the property.