Once again I need BP's help. I have a property I rehabbed and listed for sale. The buyer interested in my property is about 60K short of paying for this property all cash so I was wondering if it would be a good idea for me to carry the 60k(OWC)? They are putting down 50k for the property(almost 50%). Do you have any suggestions on the best way to handle this. I was told to use a loan servicing company if I plan to makes this type of loan and they charge around $20.00 per month to do this. Any suggestions or better ideas would be appreciated.
Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
16y
I have owner financed properties. I charge an above market interest rate so that the buyer has an incentive to refinance. I put in a balloon after 3-5 years and use a servicing company. They servicing company handles the escrow for taxes and insurance and the fee is paid by the borrower.
Real Estate Investor · New York, NY · Member since 2008 · 105 posts · 69 votes
16y
Owner finance, add a 25% markup (15K) with an above average interest rate and you could sell the note.
Or
Owner finance and carry back with a 3-5 year balloon like Richard said. If you are looking for a servicing company, Virgin Money is a company that offers this (By billionaire Richard Branson of virgin megastore, virgin records, virgin atlantic, etc...). I haven't used them so keep that in mind when doing your due diligence for a servicer.