Owner Financing vs Buying Cash and Refinancing Into a Traditional Mortgage

[Darius Kellar]

Owner financing is a great way to acquire real estate if you cannot get approved for traditional financing. But I think that newer investors are misunderstanding point of value. With that in mind, just because a seller is offering owner financing terms; it does not mean that you need to buy the property at or above value. The name of the game is buy low or invest in something that is under value at the time of purchase.

If you are getting owner financing to acquire the property please include the evaluation of the risk and time versus doing a simpler acquisition.

[V.G Jason]

If you're doing owner financing, the main issue is the owner's current situation with the house. The terms, house price, etc., is secondary to that. Owner must be 100% clear of any debt.