Truly Interest Free is in the business of developing organic interest-free financial models, products and services. Currently we are laser focused on the execution of our interest-free seller financing service.

Some people may not be familiar with concept of seller financing. So here is a brief explanation of how it differs from regular financing.

In a typical real estate purchase, buyer locates a property and approaches a bank to finance part of the purchase price. The bank puts the buyer and the property through its underwriting process and writes a check to seller. The seller gets 100% of their money at the closing table minus real estate commission if an agent is involved and closing costs if the buyer has convinced the seller to pay the same. Bulk of the closing costs goes to the bank in the name of real costs and cooked-up fees. The bank puts a lien on the property. The buyer pays the bank interest and part of the principal generally for decades until the property is paid off.

In a seller-financing situation, buyer locates a property that is owned free and clear (no mortgage) and the seller is willing to double as a bank. Since the property is free and clear, the seller has the sole discretion to sell it against cash, interest-based deferred payments or interest-free deferred payments. At the closing table the seller receives agreed-upon down payment -- generally 10 to 20 percent. Regardless of who pays the closing costs, the amount is substantially low. Owner puts lien on the property for the remaining amount. The buyer makes monthly payments to the seller until the property is paid off.

There would be no point talking about interest-free transactions when one gives up without trying that those who have the power to make it happen will not cooperate. Truly Interest Free makes its fees by locating sellers who are willing to sell their properties on interest-free basis. It is not easy, but it is doable.

Here are some of the reasons why sellers agree to extend interest-free financing on their properties:

  1. They make a quick sale to a ready and able buyer,
  2. They sell their property at a fair market value without any discounts,
  3. They save real estate agent’s commission because buyer pays for our services,
  4. They avoid paying for closing costs because there is no bank involved to charge mortgage processing fees.
  5. Some people don’t like to get their money at one time. They prefer to get it over a longer period of time, and
  6. Some sellers save on taxes.

We are also working on interest-free business, car and education financing models that will be released once our interest-free seller financing service is well under way.