Owner Finance Guidance -
We recently put our property on the market for owner financing.
We started thinking of all the nuances we will be tackling during this process; our note is due on the balloon soon and we will be refinancing. Additionally, the loan on the property is a joint loan with another property.
For guidance, the post is to reach out and ask if we have missed something or if anyone could share an experience they had. A particular concern is the loan product for the refinance, for cash flow reasons.
refinance the joint property loan into individual loans - individual loans must be able to pay off the existing loan.
Insurance - what are strategies implemented to make sure insurance is covered for us and the occupant?
Since we are refinancing what are some loan service products that you all have seen (because we do not want to get a loan that exceeds the years we commit to the people purchasing the home).
Property numbers - purchased for $37,500 5/2016
Owner finance- $53,000
Refinance amount - unknown (we think it’ll appraise for $42-45,000).
What is the principal balance due on the original loan is it the 53k? Wrap around mortgages would work however, you wouldn't want to sell it for a loss on both the capital loss side and the cash flow side.
I would reach out to the seller and ask for refinancing. If you've been paying on time and taking care of the place he or should shouldn't have a problem with more interest income.
Worst case scenario, your LLC goes bankrupt, you walk away from the deal with experience and your personal assets in tact. Good luck
Wait a minute, you are selling a house for 53k that will probably appraise for 43k?? How is that helping anyone besides you?? That does not seem fair or ethical. I can see if you raise the interest rate if credit is an issue, but overpricing a house?? Karma brother, Karma.