Owner Financing in Pennsylvania
I own about 70 single family homes in the Scranton PA area. I'm interested in selling them owner finance. More interested in land contracts and lease purchase options enough /without needing a lawyer each time.
The properties are worth about 150k each. Thinking about marking them up 20 percent and chsrvyhg interest in the low teens. I don't want to maintain them. I want to escrow taxes insurance and sewer.
Should I do three year balloons?
30 year terms?
40 year terms?
I don't want to make any mistakes in the Dodd Frank act.
I'd like to be able to evict rather than forclose.
Need a loan servicing company?
Are there companies that specialize in helping with this process?
Any advice?
I'm near Scranton PA.
Most Popular Reply
@John C., you also need to look at PA law. I think they have updated limits on owner financing sales as well. So, you may only be able to originate such a sale once every 12 months or something like that. So, it could take you 70+ years to get all of these under contract!
Get a good real estate lawyer and look into the state laws!
Also, be honest with yourself that the approach you describe is intended to take advantage of people who just don't understand what a terrible deal you are offering them.