BiggerPockets

You can owner finance.

If you are thinking long term, then the advice given is best.

Think of how much you pay for your car. When you finance it you pay about 20k for a car that you could have bought outright at 10K.

So you can just about double your money for that house by owner financing it. The more properties that you can have doing this for you the more comes in each month to finance your next purchase or vacation, ect.

You are not doubling the payments, just doubling the amount of total monies recieved because of the interest you are allowed to charge.

Also you are reducing your expenses because there is no fixup charges for you, it is now the responsibility of the owner. And owners take care of their properties better than renters do, so if you do have to foreclose that is your total expense as opposed to having to allocate 50% of your rental for those maintenance issues of rental.

Monthly payments can be more or less than your quoted rate depending upon interest rate and finance term that is agreed upon.

This is true, but with the economy the way it is today, if he can afford to keep the property as a rental then why should he sell his note which would get him only 50-80% of the note face value without being able to claim any of the interest which is what makes the owner financing a viable solution for increasing his nest egg for future purchases.

This, as it was described, is not someone that has the NEED to sell, but is looking for the best way to increase net worth.

Curt is 100% right. Let them fix their credit before they approach you. It's not your job to help them now. If the property is cash flowing, hold it until the right buyer arrives. If they can't get an FHA loan, they just can't get a loan, period.

i know this is an old thread, but i'm a bit surprised that nobody asked what their 'bad credit' was until today.

doubt this is still being monitored by the op, but would love to hear what he decided to do since it is now 9 mos later.