Seller Financing, nows the time.

So, the stimulus package does not offer the $15,000 credit that I had hoped, but it doesn't mean it isn't a good time to buy or to make some money.

Yes interest rates are low, but lending criteria is still tight. One alternative would be seller financing. I know quite a few people that make their living off of seller financing/private lending. What they do is carry the contract for the buyer and get paid interest like a standard mortgage except the seller is the "bank" so to speak. Now, some property owners don't mind lending because if the buyer forecloses, the lender/seller can turn around and resell the same property over and over. Now this will only work if the seller obviously has the cash to loan or owns the property outright, but it is a good alternative to conventional lending.

Again, don't get into a private contract if you cannot afford the property. No good will come out of that situation.
Items to remember when considering financing the buyer.

1. If you don't want to hold a 20 or 30 year contract, you can amortize the contract over 20 years with a balloon in 3 or 5 years. Just like your local bank can.

2. Always have a lawyer write the contract and oversee the negotiation with your Realtor. No, matter how smart you think you are.

3. Private Financiers usually can charge more interest then your typical bank or mortgage.

4. You might want to discuss the ability for the buyer to borrow more money against the property from a third party with your lawyer. You don' want a buyer to default and then you owe the 3rd party lender.

Seller financing isn't always the answer, but it is an option. And it might just be a way to extract money from your property instead of listing for a year or more.