Do Buyers Have Unrealistic Expectations Regarding Owner Financing

[Mike Morrison]

I ask this question because in the last year,all of my residential sales involve owner financing. I would say that 80% of prospect buyers expect an interest rate of under 6%.
When they find that we are talking north of 7.5%, they balk.
Are any of you finding this?

[Rob Gillespie]

Mike,
I sell a lot on owner financing, one of my favorite lines is I explain that I am taking them from renting @100% interest down to owning @10% interest. I am saving you 90%! This seems to put things into perspective for them.

I deal mostly in lease options now, so I am giving them a 20% credit per month of on time payments off of the purchase price. This is MUCH more than they would get in a fully amortized mortgage. :mrgreen: