Ridgeland, MS · Member since 2009 · 106 posts · 0 votes
17y
I'm fairly certain you will see that this varies from person to person. I am sure it depends on if the borrower is putting oney down, if so, how much, etc.
As for our company, we are normally in the 8-10 range.
Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
17y
It entirely depends on the circumstances, downpayment, credit score, their desperation to buy, your desperation to sell, property condition, economic condition, etc.
That being said, I just closed on an owner finance property on Friday. I charged 7%. Was lower than I like to get, but he was a strong buyer and was already locked into a 5.75% mortgage. The bank saw value in him, and so did I.
Investor · Kalamazoo, MI · Member since 2009 · 1k+ posts · 495 votes
17y
Jeff is right you don;t want to go over "state's usury law" when seller financing your properties. In creating a secure and saleable real estate note you want to make sure you are charging at least slightly over market rates with out over charging. The norm for land contracts is 10%. Mortgage notes with less than normal rates will be discounted more if the note is sold.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
My question was not answered. I am not asking what rates you are currently receiving. I was asking what would be above adn beyond a states usery law?
I pointed out an example of notes in the mid to high teens for interest rates back in the 80's. Today, you have HML writing notes for 18% as well. Granted those are usually short term.
Plano, TX · Member since 2012 · 43 posts · 10 votes
7y
I am just wondering if rolling all my rentals over into owner financing is a good strategy for retirement and cashflow? Other than non payment causing a foreclosure there seems to be alot of positives netting around 9.9% on 30yr notes.