I became successful by OWNER FINANCING houses

8 Replies

I became successful by OWNER FINANCING prpoerties. I hated being a landlord. I morphed into owner fianacing...same cash income with way less liabilities (expenses).

-I buy a house using OPM
-I don't fix it
-I owner finance it "AS IS" for double what I have in it (10.55 for 20 yrs)
-I collect a down payment (and put it in my posket)
-The new owner goes to work fixing up MY COLATERAL
-I collect the spread btween what I owe and what I collect
-I never fix toilets or get calls in the middle of the night
-When I collect a payment...it's MY MONEY.

When was the last time you called your mortagae holder to fix your toilet?

From my experience; RENTER tear up your house and leave...owner fix up your house (colateral) and stay. When the new owners fis up the house enough, I can sell my note with NO DSISCOUNT. Great cash flow with a big BANG at the end!

--Mitch Stephen--

Hey Mitch,

Ya mean you dont get to play with contractors? Quite a sacrifice Im sure, but sounds like its worth it!

Do you market to tradesmen or as fixer uppers?

Do you have to take many back... defaults?

i read your book and didn't like it at all. sounded made up, especially the story about the boat sinking and the wife getting mad at you for buying "yet another house".

Originally posted by Rob K:
Mitch Stephen I read your book and liked it, but how has the Safe Act impacted your business? Even the largest land contract buyer in my area has stopped buying them and just does hard money loans now.

Mitch, I enjoyed your book, and might be trying to imitate you, except for Rob's question.

Are you still originating new mortgages?

Originally posted by Rob K:
Mitch Stephen I read your book and liked it, but how has the Safe Act impacted your business? Even the largest land contract buyer in my area has stopped buying them and just does hard money loans now.

Yup, it would be illegal for me to owner finance deals in my state (Georgia) based on the SAFE ACT. The only exception would be if I did a very limited number of deals and if they were titled in my personal name (which, for liability reasons, won't happen).

So, this isn't even an option in my state...and I'm guessing others as well...

I have not read the book (just downloaded 100 pages and saw the table of contents), but I didn't see a section on NMLS compliance. As J Scott points out, unlicensed (non- MLO) REI doing seller financing is impacted by recent legislation... as is mortgage servicing (and foreclosure processing) in many states.

Mitch,

I love the idea of owner finance, I don't have to do any work and still get the cash flow. My question is this. I've got a property I'm trying to work a deal on right now, there isn't much equity in it, but that's not the problem. It was a meth lab seizure house, current owner knows that, doesn't look bad at all though (I checked it out yesterday.) Do you suppose I could find someone willing to do the mitigation under owner finance? I believe that would fall on me because new owners have a certain time period to act on it. Or I suppose I could get the current owners to pay for the mitigation costs and then lease/option it out to new tenant/buyers.
What's your suggestion?

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