Seller Financing
Become the bank. Collect monthly income with tax advantages.
How Seller Financing Works
Instead of receiving one lump sum at closing, you receive monthly payments from Quelark — often at a higher total price than a cash offer, plus interest on top. This can spread capital gains over time for significant tax benefits.
Is This Right For You?
- Owners who have a property free and clear (no mortgage)
- Retirees or those seeking reliable monthly income without management hassle
- Sellers concerned about a large capital gains hit in a single tax year
- Owners whose property has been on the market without the right offer
The Process
- We agree on a purchase price, interest rate, down payment, and term.
- At closing, Quelark takes ownership (the deed transfers) and signs a promissory note and mortgage/deed of trust in your favor.
- You receive a down payment in cash at closing.
- Each month, you receive a principal + interest payment, typically serviced by a licensed third-party loan servicer.
- At the end of the term (or at a balloon), Quelark either pays off the balance or refinances.
Why Sellers Choose This Strategy
Higher Total Price
Seller-financed sales typically command 10-20% more than cash offers because of the financing premium.
Monthly Income
Reliable passive cashflow, often for 10-30 years, with no landlord responsibilities.
Tax Advantages
Capital gains can be spread over multiple years via installment-sale treatment (consult your CPA).
Secured by Real Estate
Your note is secured by the property itself — if we ever stopped paying, you could foreclose and recover the home.
Common Questions
What if Quelark stops paying?
Your note is secured by the property. If payments stop, standard foreclosure process returns the property to you — with any down payment and prior payments kept.
Can I sell the note later?
Yes. Private mortgage notes are transferable assets. There is an active market for seasoned, performing notes if you want lump-sum liquidity later.
Are my payments taxed as income?
The interest portion is taxed as ordinary income; the principal portion is treated under installment-sale rules. Your CPA can project the exact impact.
What interest rate should I charge?
Typically 6-8% for owner-carry residential notes. We'll discuss fair rates as part of structuring the offer.
Important Note
This page is educational and describes how Quelark typically structures Seller Financing transactions. Actual terms depend on your property and situation. This is not legal, financial, or tax advice — always consult a licensed attorney and CPA before signing any real estate agreement.
Ready to Explore Your Options?
We'll make you a fair, no-obligation offer within 48 hours. Tell us about your property and let's find the best solution together.