Owner financing

Investor · Houston, TX · Member since 2015 · 16 posts · 11 votes

I was wondering if someone on BP can help me. I have a couple of properties that I would like to do owner financing, they are all paid off. These properties are in the Houston area and I have never done owner financing before and would like some guidance on how to do it. thanks

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Jerry TaBusiness Member

Property Manager · Houston, TX · Member since 2012 · 256 posts · 121 votes

10y

http://augustrei.com/

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Jerry TaBusiness Member
Property Manager · Houston, TX · Member since 2012 · 256 posts · 121 votes
10y
http://augustrei.com/
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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
10y
Originally posted by @James Nguyen:

I was wondering if someone on BP can help me. I have a couple of properties that I would like to do owner financing, they are all paid off. These properties are in the Houston area and I have never done owner financing before and would like some guidance on how to do it. thanks
Under modual 6 there is a video on seller financing
https://www.biggerpockets.com/courses/a-beginners-...
You can also search at the top right for "owner financing" and there are a few blog articles on the subject
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Account Closed
Real Estate Agent · Houston, TX · Member since 2016 · 53 posts · 19 votes
10y
Have an attorney that specializes in Real Estate create a contract. 10-20% down & 10% interest seems to be regularly used terms. Set-up auto deposit to account and monitor for late payments.
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Alex Hobbs
Middletown, DE · Member since 2015 · 52 posts · 11 votes
10y
@James Nguyen Start with your goals. Decide what would you like to achieve with owner finance. Think about who your target or buyer would be, what their reason for wanting owner finance is. Figure out what terms you would be happy with( DP, interests, balloon payment, length). Contact an attorney to draw up the paperwork and put the deal out there. A good attorney and title company will be able to help you figure out what needs to legally be done to get the deal to the table.
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Lyall Storandt
Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
10y
@James Nguyen There's a local company that specializes in servicing owner-finance notes. I'll PM you their details. I'm confident they can help guide you through the process.
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Robert Herrera
Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
10y
@James NguyenI am looking for Owner financing. Are you selling these houses soon?
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Charles Kennedy
Member since 2025 · 48 posts · 14 votes
9mo
Hey James — even though this post is a few years old, here’s a quick tip for anyone thinking about owner financing:
- Owner financing is basically you acting as the bank. You can carry all or part of the sale price, set the interest rate, term, and even a balloon payment.
- Before doing it, make sure the monthly payments cover your costs (taxes, insurance, HOA if any) and leave a margin for cash flow.
- Also, consider having a note and mortgage/deed of trust drafted by a professional, so you’re protected if the buyer ever stops paying.
Owner financing can be a great way to get higher returns than traditional sales, but you want the numbers to pencil out for you today — not just for the buyer.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
9mo
Speak to Dan deppen call the underwriter
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