Owner financing

2 Replies

When introducing/ wanting a seller to do 100% owner financing, how should I lay it out, what's an easy way to explain an owner financing deal to a seller?

I've recently been something like this.

Ill give you X amount monthly until property "seasons" - appreciates over time - you will tell me your interest rate - and then refinance in about 3/7 years with traditional loan.

-Obviously it would be organized differently.

What are suggestions to make them say yes?

Cash or terms discussion

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Selling with an agent and paying  the costs to sell 10 to 12%

Renting out, eviction and damage potential

Owner financing, terms sale, owner netting more money, better resident than regular tenant

Depending on what price point you're considering, and whether or not the seller currently or has recently lived in the property, you may cause them a very uncomfortable tax situation. Recaptured depreciation is due in the year of the sale. The capital gain is also due, but only as the principal is received. So, 100% seller financing might be a great deal for you, but at what risk to the person extending you the credit? Be sure you put them in a better situation than they are in now.

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