Investor · Buffalo, NY · Member since 2020 · 5 posts · 1 vote
Hello, I am wondering what are the things I should be aware of when offering owner financing to buyers.
I own a 6 plex in Buffalo, NY (596 Ontario St.) that I would like to continue to get cash flow from, but feel that a local manager would generate more income from this property than I do from afar. The goal is for the buyer to generate more money than he needs to pay me and make it so I don't need to spend more time looking after the place. I'm willing to finance because I don't need the cash now, but would like the cash flow.
Thanks in advance to all you experts for sharing your experience.
Hey Ben, I’m certainly no expert but I have been able to buy 2 properties with owner financing and it has went very smoothly both times. I think it’s all in how you would like the terms to be. If you amortize over a longer time like 15 to 30 years you’ll be getting smaller payments but more interest in those payments. That also makes it easier for the buyer in most cases as they’ll have lower payments to you. It also depends on how long you’re willing to wait to call it due with a balloon payment. If you want the monthly cash flow for a while you might not care about calling it due in a year or 2. The 2 I’ve done have been on 10 year loans, with 7 & 8% interest rates and due in 18 months and the other was 2 years. I was able to put less than a typical 20% down that a bank might require so I was fine paying those higher interest rates. Hope that helps!
Did you have this property on the market before? I feel like the address sounds familiar
@Ben D. I’m looking to expand my real estate holdings and have been interested in purchasing using owner financing. I currently manage my duplex house hack in Buffalo NY. Connect with me if you would like to share some information regarding the property. Thanks!
@Ben D. I live and invest in Buffalo NY and I am very interested in helping you look at different options on your property as well as getting more info on your property in what you would like to do with it. I have great resources in the area and would love to connect with you. Thanks!!
Ben. I’ve structured an owner financing for one of my properties. I’d be happy to chat. Also, I prob have some buyers for your 6-plex. Connect with me! I know exactly where that is. I house hacked nearby.