Posted by Zack W on December 03, 2004 at 13:05:24:
Sam,
I always try to avoid owner financing when possible and in place I use the “lease option” technique. Lease option is viewed as a lease agreement [in most states] as opposed to your buyer having equitable interest in your property. This is a big deal should your buyer default.
Zack W
Owner financing - Posted by sam
Posted by sam on December 03, 2004 at 05:47:11:
After I purchase a property by using a hard money lender, and now holds the 1st lien, how do I offer owner financing to the buyer? I’m confused on how to do this as a ‘creative’ means to selling!
Re: Owner financing - Posted by Chris
Posted by Chris on December 03, 2004 at 14:15:44:
2 ways you work with a good mortgage broker that deals with subprime lenders(loans for people with bad credit)And can find banks that don’t require title seasoning, meaning they can work with a property that was just bought and resold a few months ago. You get a buyer that has dinged credit that needs 10-20% down but of course doesn’t have it. So they put up 5% and you hold a second mortgage for the 5-10% they don’t have.
Or you hold the mortgage and then sell it right after closing. This requires a little more experience and $$, you have to pay the buyers closing costs up front, it can’t be taken out of the proceeds at closing, if you want a good price for the mortgage you need to shop it around to different note buyers.