BiggerPockets

It's hard to say without knowing your plans post-sale. Do you need the cash now, or can you afford a 3-5 year wait? Can you make a better return on your equity then what you'll make on this deal? In the event they default, is the money they have in the deal enough to cover eviction and make-ready costs?

It sounds like owner financing was not one of your exit strategies. Has the house been on the market long enough for you to get concerned that this may be your only offer?

If you're confident in the buyers, could you carry a small second that may get them to conventional financing?

You also may check with an attorney on SAFE Act compliance and if you need a licensed broker to originate the note.

Mike

A. First --if you are an Investor / Rehabber --why do owner Finance ? Use all money to buy --fix and sale two or three houses and make over 25 % return. B. Second -- Why use RE --if you want to do owner Finance --advertise as such OR put a big sign --Banner at the house --up the price $5000 more and ask for 20% down -- C. Third option is to do Lease / Option --take $5000 Non Refundable deposit --and rent for one or two years -- with option to buy -- let them get Conventional Financing or take 25 % down with owner financing -- The way you have --10% ( $6500) down and you pay $5000 back -- You have NO leverage -- Do not accept the offer.

Your options are limited in Texas as to Champak's suggestions to six months!

Since this is not your primary residence, you might search here about the "SAFE Act".

Also, you need to consider usury laws applicable.

Chuck, I'll guess you're unaware of the issues now, you can search here as much has been written about seller financing, you can't just go at it like sellers did 10 years ago.

See an attorney familiar with the restrictions and get with a mortgage broker/originator to assist. Good Luck! :)

@Chuck Brickman Great, then all you're held to is prudent lending and preditory lending practices. I still suggest you and your borrower se an attorney. Good luck!

Good point Kyle, and at which time they object and the foreclosure becomes a judicial process where the judge looks at the arrangement and decides in a court of equity, and while the SAFE Act is not required to be followed it becomes a base line for prudent expectations of a seller. :)

Mike,

I'm still in the information gathering stages...weighing the pros and cons.