Owner Financing Question

6 Replies

Agent should be able to structure such a deal and get commission, most who list aren't looking for owner financing but it's always worth a shot to ask, expect seller/agent to ask for high down. This can work for a property that has had difficulty selling (high days on market, close to expiring, multiple pending>active activities, etc.)

We ask for seller financing all the time on listed properties. Generally speaking, you need to offer enough down to cover commissions, closing costs, and give the seller any net cash they may need/want. Seller financing shouldn't have any impact on agents commissions. Every board contract in every state I've ever seen has an option for owner financing either in the contract itself or an pre-written addendum.

Many agents (and even real estate companies) are opposed to doing owner financing deals for various reasons from lack of understanding to fear of litigation.  I can't even tell you how many agents have told me that it's "illegal".

We recently just closed on an owner finance deal where the listing agent called us to the listing appointment and we bought it on the spot (10% down, 6% interest for 30 years, no balloon). Agent got a full commission (6%), seller got everything they wanted (a long term monthly payment and a full price sale) and we didn't have to deal with a bank. Win-win-win.

@Brendon Kelley my first question on any property for sale, listed or not, is if they will do owner financing. is it totally ok to ask this. if the agent has an exclusive contract, they will still get paid. i love owner finance. if you have any other questions, just let me know. 

@Brendon Kelley   @Nate Falconer  As Ryan mentions above, total fine to ask and yes, realtor still gets paid.  I've also done a lot of deals like this, buying.

Use a good real estate attorney that specializes in these deals.  Depending on your state, the attorney will close the deal or forward the paperwork to a title company (VT is an attorney state, as it's all done at once).  Yes, you should get it inspected, appraised and title insurance, just like an ordinary purchase.

The main difference is you pay the seller the mortgage amount instead of a bank. All the other normal expenses (taxes, ins, maintenance) you pay, just like an ordinary house purchase.

@Nate Falconer - Arizona is a title state so we always work with a title company to close our deals and we always get title insurance.  We generally have the title company service the loan, and they escrow for taxes and insurance.