Hello BP Family
After checking to see if I'm qualified for a FHA loan, I've decided to go with Owner Financing for my rental property. I read the book "Real Estate" by the writer Brandon Turner about investing with Owner financing I'd like to give it a try.
But before I even look in to it I need some advice from anyone who tried it or knows how it works good or bad.
Thanks in advance
Seller Financing or Owner Financing is rare and not talked about by agents to home sellers.
So you want to buy w Owner Financing.
First see a RMLO, or Registered MLO (mortgage loan originator) and fill out this 1003 app
The most common way to buy (owner occupant) on Owner Financing with little down is a Lease Purchase or Lease w Option. You will need 3% within 24 to 26 months and go through a home buyer's education class if you are living in it. Home Buyer Class for California http://ehomeamerica.org/calhfa
If you are an investor, that is different, as the new laws (Dodd Frank, et al) do not apply for NOO, and I would find a seller that wants debt relief on a rental or an expired listing (where a home owner tried to sell with an agent and failed), and you contribute by buying on terms, either sub2, lease option and assign, or on a wrap. These terms are explained on my blog http://www.biggerpockets.com/blogs/3-reiskills-and...
The biggest thing about presenting "terms deals" to sellers is you educate the seller about selling traditionally with an agent vs renting it out w a property manager vs owner financing (sub2, wraps, lease options, etc).
Owner financing deals are negotiated, and not found on the MLS (well rarely found, and that is usually because a real estate investor that is selling on terms that knows more than you, so beware!) :)
Marketing for Motivated Sellers
Free Marketing (takes time and patience)
2. Listed Houses
5. Wholesalers with >= 80% equity (have a marketing agreement to give you the lead for a flat fee if you are successful)
6. COIs - Centers of Influence - I like Financial Planners to network with
Thank you Brian
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