Owner finance 8.5% rate

[Chris Drumm]

If you can do an owner finance deal for a buy and hold property with 5% down and an 8.5% interest rate, is that reasonable or is that rate too high? I am hearing that in this situation it is a fair rate but i want to see what other people think. Thanks

[Jassem A.]

I usually shoot for 5% or better but I have purchased a couple homes on land contracts for 10% but the loan size on both were less than 20k and I'm getting ready to pay them off using money borrowed at 5%. If you don't have decent credit or 20% down or the loan size is pretty small then 8.5% is pretty good.