How often do tenant buyers actually buy the property?

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How often do tenant buyers actually buy the property?

Amy McDonald
Rental Property Investor · Kansas City, MO · Member since 2018 · 12 posts · 3 votes

Hello!  I am interested in offering owner financing on a Land Contract, interest rate locked in for 5 years.  My question is- how often does a tenant-buyer find alternate financing?  In other words, what are the odds of me getting the full 5 years of payments?  Thanks!!

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  • Alex Gurvitz
    Lender · Brooklyn, NY · Member since 2015 · 42 posts · 37 votes
    3y

    Good Day.

    Not very often in my experience. If they do not qualify for traditional financing, chances are slim that they would qualify for alternative financing. Especially in todays market... 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Amy McDonald:

    Hello!  I am interested in offering owner financing on a Land Contract, interest rate locked in for 5 years.  My question is- how often does a tenant-buyer find alternate financing?  In other words, what are the odds of me getting the full 5 years of payments?  Thanks!!


    These deals fail often because they are structured incorrectly. If you know what you're doing, it can be financially beneficial.

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  • Amy McDonald
    OP
    Rental Property Investor · Kansas City, MO · Member since 2018 · 12 posts · 3 votes
    3y

    Thank you.  My goal is to offer our properties with owner financing for 5, 8 or 10 years.  Full disclosure, I kind of hope they don't go elsewhere to refinance, as I would like to keep the properties as long as possible.

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