Should I offer seller financing?

Question

I bought 10 acres of vacant land in Joshua Tree CA at the county tax auction.
I have it listed on the MLS for $39k with an agent. But I also have it listed on FB marketplace and often get inquiries about financing. This sort of property is expected to move slowly but there is demand.
I’m not opposed to the idea of seller financing but I’d want me $14k initial investment as a down payment.

My question is whether or not I should consider this option to help speed up the sale. I’m not in too much of a hurry and come August I won’t have to pay capital gains taxes at least. But the plan is to sell it so I want to keep on working towards that.
Are there any major risks involved? Would I keep the deed in my name until it’s paid off or would it transfer to the buyers name and only revert if non payment is an issue? How difficult is it to prove non payment to revert the property back to my name? Or am I thinking of this all wrong?

thanks for any advice!!

Jack Schwartz · Answer

Offering owner financing can expedite the sale of your property. But sellers typically prefer not to retain the buyer's contact information to facilitate a clean transition to the next transaction and avoid potential financial entanglements,

It's essential for buyers to recognize that the original owner could reclaim ownership if the property was purchased from a title sale auction, with specific state regulations, such as a 2-year reclamation period in New York, Despite these factors, owner financing can benefit buyers by fostering a sense of connection with the seller.

Bjorn Ahlblad · Answer

With 30% down the risks are mitigated!

JT Olmstead · Answer

We do this kind of deal all day long. With 14,000 down it should be a pretty nominal risk of default.

Be sure you have the tools necessary to manage the loan properly. We place our monthly payment minimum at $350.

Chris Seveney · Answer

@Eric Mcginn

I would only recommend it if you are ok with also having a strong chance you will have to foreclose at a later date on the borrower and go through that process .

Eric Mcginn · Answer

I’d be looking at 30% down. what are the risks?

Bjorn Ahlblad · Answer

I would only offer seller finance if I get a hefty DP. Otherwise it is too risky.

Should I offer seller financing?

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