Owner financed and equity

3 Replies

Hi everyone! First post here. My name is Brad. I live in the Rockford area in Illinois. My question is in doing a owner financed deal, how much equity do you get when purchasing the house? Example: house appraised for 75k, offer is accepted at 70k with 5k down making it a loan of 65k. Thank you all in advance. 

@Brad Richards I am not sure I understand your question completely. Are you asking how much equity you would have in the example (equity = appraisal value - loan value = $10,000) or are you asking how much equity should you try to get in an owner financed deal (as much as possible)?

Originally posted by @Craig Wilcox :

@Brad Richards I am not sure I understand your question completely. Are you asking how much equity you would have in the example (equity = appraisal value - loan value = $10,000) or are you asking how much equity should you try to get in an owner financed deal (as much as possible)?

 I was asking more as a general sense but using the example as a way to the understand the numbers