Equity in owner financing

[Jasmine Valdez]

Is it possible to in a O.F.(owner financing) property/contract for the BUYER to rehabilitate the property and leverage the equity with the SELLER?  Would that work best in a conventional or traditional loan? Curious to learn more. Any advice is helpful advice. 

[Brent Coombs]

Originally posted by @Jasmine Valdez:

Is it possible to in a O.F.(owner financing) property/contract for the BUYER to rehabilitate the property and leverage the equity with the SELLER?  Would that work best in a conventional or traditional loan? Curious to learn more. Any advice is helpful advice. 

Same principle as when you buy a home using a Bank mortgage.  If you increase it's value by renovating etc., the Bank gets the benefit of its increased value until you pay out the loan.  In the case of Owner Financing, the Owner is the Bank.  

So, if you're the Buyer, no different than if you had taken out a normal Bank mortgage. 

ie.  There is no Seller "leveraging the equity" based on value increase (or decrease). 

Makes sense?  Welcome to BP.  All the best...