Owner financing(wrap) - Posted by HC(NC)

Posted by NC(NC) on July 11, 2008 at 10:13:08:

Thanks Kristine
I am on the fence on this one. It seems like a great time to wait.
Buying at FMV even with 100% financing may be a poor choice.
Our market is trailing Florida by about 12 months so better deals will
be coming soon.

Owner financing(wrap) - Posted by HC(NC)

Posted by HC(NC) on July 11, 2008 at 04:45:07:

Hi All

I am considering pulling the trigger on a possible wrap note deal where the seller is financing 100% for 10 years at 6.5 IO. Price is 295K

The building is new, very well built, and in a good location. FMV = 295000. It’s near Asheville NC.

I am thinking of selling it for 325000 at 8 or 8.5% with 10% down.
I am hoping that financing this property will create demand because of the difficulty so many people are having with financing right now.

If I can’t sell and have to rent then it will break even.

It seems like a skinny deal and I may be hanging too much hope on my financing adding value.

What is the value of seller financing in this market?

Re: Owner financing(wrap) - Posted by DP

Posted by DP on July 11, 2008 at 13:49:49:

I’m in Canada (the only country that hasn’t seen its housing market fall apart yet) and even here I’m finding sellers daily who will do 100% financing in the 3 - 4% range (amortizing too) if I pay them 100% of FMV.

So you should be getting much better deals than the one you posted.

Re: Owner financing(wrap) - Posted by Kristine-CA

Posted by Kristine-CA on July 11, 2008 at 09:32:56:

I’d look at your purchase price and the incentives offered by your seller
here. I think you’ve answered your own question about seller financing
adding value if you’re willing to buy something for 100% of FMV.

You may have to look long and hard for someone with 30K plus for a
down. There are definitely buyers with downs and who need seller
financing. But someone with 30K often has other options available to

Re: Owner financing(wrap) - Posted by John

Posted by John on July 15, 2008 at 19:42:12:

In this market you should be able to get a much better deal.

I use an owner finance program that creates a note that the seller can immediately cash out at closing for as little as a 10% discount off the face value. So the owner gets cash and my buyer buys at or very close to FMV.

Because of this, I can make mush better deals.