What can you do to stimulate sales in an 'all cash' market?
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.