cash or owner finance

2 Replies

Hello everyone, I had a investor contact me here recently about making a purchase on a property I own. He is wanting to know whether I want cash or to do owner financing. what cash I can take the money and run or take a chance in finance it and also collect interest. I think one of my other choices could be to do the owner financing and then to sell the note to somebody else. I am Not sure though what would be the best scenario and what kind of tax breaks I could get for either of the different scenarios. I have only done an owner financing once in that was to a tenant already living on the property that was always current on his rent. if I decide to do this owner financing how can i screen this guy to check his credit score and anything else that I would need to know before doing an owner financing should I ask for help with a local title company on this process. thanks in advance to any response to this all advice is  appreciated.

@Lawrence Cox III my question is, would you buy a note if you had the cash you could get from the sale of this property if you sold it for cash?  IMO, a young investor (typically looking to grow their investment dollars to accumulate wealth)  would benefit most by ownership of property than ownership of notes.  Your personal tax picture is a major factor in this equation.  You should get that answer from your tax advisor.

Is your the local economy where your property is located affected by the fall in oil prices?  A lot of markets are going to be affected by this and if you property is too I would take the cash.

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