Comments on: Seller Financing: Pros and Cons http://www.biggerpockets.com/renewsblog/2009/01/26/owner-financing-sellers-perspective/ Learn, Network, Invest Sat, 11 Feb 2012 16:57:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Brian Gibbonshttp://www.biggerpockets.com/renewsblog/2009/01/26/owner-financing-sellers-perspective/#comment-76555 Brian Gibbons Tue, 22 Dec 2009 17:57:39 +0000 http://www.biggerpockets.com/renewsblog/?p=3736#comment-76555 A strong trend now and in 2010 (IMHO) is offering either:Seller Finance 1 - Long term lease options. Get the property in perfect shape, get 3% or $5K down, and offer 50% rent credit the 1st year only. Offer exercise price at new appraisal or average of 2 appraisals. You may not like offering properties at new appraisal (declining market), but it is fair for all parties. The Lease Option Buyer needs a real new appraisal value to get a loan. ``````````````````````````````````````````````````````````````````````````` Seller Finance 2 - Free and Clear - Contract for Deed. People that hold paper and cashflows will win over the next 5 years better than flippers. A cash flow that can be utilized in many US states is an installment contract (CFD, AFD, ILC, etc). Texas is terrible, as are a few others. But I love them if the state laws allow repossession on installment sales.A tool for repossession is Deed in Lieu of Forecolosure. Ask your REIA Attorney if CFDs work.Selling to great income, terrible credit, 5% down, 95% financed for 40 years at 9.99% will create an affordable payment near rent in many RE Markets (say $100K - $250K middle class 4 B 2 B homes.)````````````````````````````````````````````````````````````````````````````` If you buy all cash with private IRA mortgages, then sell on lease option or CFD (free and clear), I believe it is a strong strategy for 2010 and beyond.Brian Gibbons A strong trend now and in 2010 (IMHO) is offering either:

Seller Finance 1 – Long term lease options.
Get the property in perfect shape, get 3% or $5K down, and offer 50% rent credit the 1st year only. Offer exercise price at new appraisal or average of 2 appraisals. You may not like offering properties at new appraisal (declining market), but it is fair for all parties. The Lease Option Buyer needs a real new appraisal value to get a loan.
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Seller Finance 2 – Free and Clear – Contract for Deed.
People that hold paper and cashflows will win over the next 5 years better than flippers. A cash flow that can be utilized in many US states is an installment contract (CFD, AFD, ILC, etc). Texas is terrible, as are a few others. But I love them if the state laws allow repossession on installment sales.

A tool for repossession is Deed in Lieu of Forecolosure. Ask your REIA Attorney if CFDs work.

Selling to great income, terrible credit, 5% down, 95% financed for 40 years at 9.99% will create an affordable payment near rent in many RE Markets (say $100K – $250K middle class 4 B 2 B homes.)

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If you buy all cash with private IRA mortgages, then sell on lease option or CFD (free and clear), I believe it is a strong strategy for 2010 and beyond.

Brian Gibbons

]]> By: JHhttp://www.biggerpockets.com/renewsblog/2009/01/26/owner-financing-sellers-perspective/#comment-75200 JH Thu, 12 Nov 2009 00:19:20 +0000 http://www.biggerpockets.com/renewsblog/?p=3736#comment-75200 If buying a place with seller financing it is a good idea to have the seller frequently provide documentation that they are still paying the mortgage on their end. Otherwise you could end up paying the seller while they are not paying their mortgage, leading to foreclosure. If buying a place with seller financing it is a good idea to have the seller frequently provide documentation that they are still paying the mortgage on their end. Otherwise you could end up paying the seller while they are not paying their mortgage, leading to foreclosure.

]]> By: Robhttp://www.biggerpockets.com/renewsblog/2009/01/26/owner-financing-sellers-perspective/#comment-64309 Rob Wed, 04 Mar 2009 02:50:02 +0000 http://www.biggerpockets.com/renewsblog/?p=3736#comment-64309 In whatever part of business there's always a risk. You just have to decide which is better. And a part of it would be to gain or to gain more profit. In whatever part of business there’s always a risk. You just have to decide which is better. And a part of it would be to gain or to gain more profit.

]]> By: Erika Napoletanohttp://www.biggerpockets.com/renewsblog/2009/01/26/owner-financing-sellers-perspective/#comment-63468 Erika Napoletano Tue, 27 Jan 2009 19:18:15 +0000 http://www.biggerpockets.com/renewsblog/?p=3736#comment-63468 Seller financing is also an excellent means for real estate investors to pick up additional properties in the current buyer's market. Especially in light of tightened lending criteria that adversely affects the investor buyer, these opportunties can truly be gem-like when you find them! Seller financing is also an excellent means for real estate investors to pick up additional properties in the current buyer’s market. Especially in light of tightened lending criteria that adversely affects the investor buyer, these opportunties can truly be gem-like when you find them!

]]> By: Jay Kochhttp://www.biggerpockets.com/renewsblog/2009/01/26/owner-financing-sellers-perspective/#comment-63426 Jay Koch Mon, 26 Jan 2009 16:53:57 +0000 http://www.biggerpockets.com/renewsblog/?p=3736#comment-63426 Richard,Thanks for great article.In these unsettled financial times, as mortgages become more difficult to get, more people will have to use owner financing, so we need to let more people know about how to do it.jay Richard,

Thanks for great article.

In these unsettled financial times, as mortgages become more difficult to get, more people will have to use owner financing, so we need to let more people know about how to do it.

jay

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