Updated over 9 years ago on . Most recent reply
Owner financing deal
I have the opportunity to purchase a 4 flat property through owner financing. The seller PREFERS to do owner financing, as opposed to me getting a loan on the property or paying cash. Does that seem odd? I have looked at quite a few deals, but this is the first time someone has specifically requested owner financing.
Some background: My agent has worked with this gentleman for many years and claims that he wants to do a deal like this for tax purposes (as opposed to receiving a lump sum through cash or a traditional loan). My agent originally listed the property, but lost it due to it being listed too long with him. The listing is currently with another company. The numbers do seem to fit my criteria for a cash flowing b&h property, so I do not want to just walk away because it is different than other financing options.
Should I assume that doing owner financing, the seller would want full asking price? Are owner financed deals generally a better deal for the seller or the buyer?
Most Popular Reply
#3 Guru, Book, & Course Reviews Contributor
- Investor, Entrepreneur, Educator
- Springfield, MO
- 12,884
- Votes |
- 21,918
- Posts
#3 Guru, Book, & Course Reviews Contributor
- Investor, Entrepreneur, Educator
- Springfield, MO
That's not odd at all, he probably has huge gains that can be deferred by payments received. He also has interest income, more than any CD I'd bet.
Know this, seller financing does not increase the value of real estate.
A SF deal can be an economic plus, less expense, but don't go over the market value!
When sellers offer SF, they usually ask a premium, justify your offer, then tell them they can be the bank. See your attorney.......and I assume you aren't living there! Good luck :)