In my on going quest to learn about this new world of REI, I have been trying to flex my muscles in the brain to understand the ways in which everyone else is successful.
When speaking about doing seller finance deals, I was thinking of ways to try and get the most out of the deal.
My first question is what are typical interest rates one would be paying out to the seller in such transaction? It seems like it would be higher than a typical bank interest rate. Since, from a sellers mind if they (the buyer) were able to just go to a bank and get a loan they would but since they can't, now I (the seller) have the upper hand in the deal.
Second, if I am the buyer in a seller finance loan, am I able to then turn around and rent that property through a property management group? Seems like there would be a lot of money exchanges time rent is due. Tenant >> Property Management >> Me (Owner) >> Seller.
Third, since this whole transaction isn't through a typical bank, is it possible the original seller can come back and want the house back and possibly tie you up in court proceedings about who "owns" the home?
Any feed back would be great. Thanks for the help all.
Forgot one. If you do a seller finance home is it possible to then refinance the home with a bank 3+ years down the road? My thought behind this is if you don't have to give a down payment with the seller and you were able to keep a tenant in their for the entire time leading up to the refi you would essentially of paid nothing during this time and gotten it for "free". I understand there would be some costs, paper work for the transaction with the seller, some maintenance, etc but beyond that you would not have had to put any money down on the home. Is this correct as well or am i missing something obvious?
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