I am thinking of offering seller financing New Jersey

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I am thinking of offering seller financing New Jersey

Jaago Viitkin
Union City, NJ 路 Member since 2014 路 131 posts 路 32 votes

Hey, 

I own 3/1 single family in South Jersey (C area) ARV about 100k

I am thinking of offering seller financing.

Anybody doing it in New Jersey? I don't like 2 year foreclosure time frames in NJ.

How do you make it safer for yourself? How can you get your property back faster if buyers do not pay?

Thanks

1Reply
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David Weintraub
Lender 路 Berkeley, CA 路 Member since 2017 路 1k+ posts 路 549 votes
9y
Where in Camden county? You know that contains the best and worst of America
1Reply
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  • Charlie Hampton
    Contractor 路 Franklinville, NJ 路 Member since 2013 路 183 posts 路 86 votes
    9y

    Curious where in south jersey? Feel free to pm me.

    0Reply
  • Jaago Viitkin
    OP
    Union City, NJ 路 Member since 2014 路 131 posts 路 32 votes
    9y

    @Charlie Hampton Camden County

    0Reply
  • David Weintraub
    Lender 路 Berkeley, CA 路 Member since 2017 路 1k+ posts 路 549 votes
    9y
    Where in Camden county? You know that contains the best and worst of America
    1Reply
  • Jaago Viitkin
    OP
    Union City, NJ 路 Member since 2014 路 131 posts 路 32 votes
    9y

    Right now I have homes in Sicklerville and Paulsboro,,,, but it should be state based not county nor township??? Or what am I missing?

    0Reply
  • Stephen Chatto
    Rental Property Investor 路 Yardley, PA 路 Member since 2012 路 436 posts 路 198 votes
    9y

    Jaago, Are you owner financing to an occupant or an investor? There are two different sets of rules. If you are owner financing to an investor maybe it can be done as a LLC, and if they don't pay they lose their interest in the LLC? Don't know if that's legit so ask an attorney, but I am thinking outside the box.

    0Reply
  • Jaago Viitkin
    OP
    Union City, NJ 路 Member since 2014 路 131 posts 路 32 votes
    9y

    Hey @Stephen Chatto

    I am an investor and would like to owner finance my homes to end buyers. I would like to hold the note, basically be landlord without taking care of the house till the note is paid off.

    PS! I have been working with other investors in NJ and heard good things about Good Vibes. I hope we can meet one day :)

    0Reply
  • Jaago Viitkin
    OP
    Union City, NJ 路 Member since 2014 路 131 posts 路 32 votes
    9y

    @Stephen Chatto do you know anybody doing it like in NJ? I know somebody in Texas doing it like this, but it takes only 45 days to do foreclosure in Texas. It would kill me if I have to wait 2 years without payments here in NJ. I am looking creative ways to work with very long foreclosures time in NJ

    0Reply
  • Stephen Chatto
    Rental Property Investor 路 Yardley, PA 路 Member since 2012 路 436 posts 路 198 votes
    9y

    @Jaago Viitkin - That's Great!  I personally have not found a way to feel comfortable doing the Owner Financing to End Buyers in the great state of NJ.   I am told that one would need to have a professional underwrite the loans, and process everything correctly.   There would need to be A LOT of equity to make me feel comfortable.   And if you need to make sure they qualify, why not just let them get a regular loan? I mean mortgages are only like 4% anyway...   Cash out and lend that money to an investor at a better rate!

    0Reply
  • Jaago Viitkin
    OP
    Union City, NJ 路 Member since 2014 路 131 posts 路 32 votes
    9y

    @Stephen Chatto My friend in Texas is financing to people who can not get regular mortgage. Many times the houses are only 50k, many of them are handyman specials. Might be that the risk is to high in NJ, but if I could find a way, it could be very profitable niche. I know you guys do a lot of business in Trenton area, who would you talk to if you were me? Thanks again

    0Reply
  • Stephen Chatto
    Rental Property Investor 路 Yardley, PA 路 Member since 2012 路 436 posts 路 198 votes
    9y

    @Jaago Viitkin - We do a lot of deals in Trenton.   Feel free to give me a call or shoot me a PM

    1Reply
  • Marlina EckelPro Member
    Rental Property Investor 路 Cotati, CA 路 Member since 2017 路 52 posts 路 21 votes
    6y

    @jaggo viitkin did you ever decide to pursue the seller financing in NJ?  I have a house in Parsippany Troy-Hills that I am considering selling.  Ideally I'd do a 1031, but was considering the idea of seller financing. That is until I read this thread about the 2 year timeline and @Stephen Chatto response.

    1Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges 路 St. Petersburg, FL 路 Member since 2013 路 9k+ posts 路 9k+ votes
    6y

    @Marlina Eckel, Depending on your circumstances it is possible to combine owner financing and a 1031 to get the best of both worlds.  If you sell a property with owner financing and allow the note to go into your exchange account then you can later during the exchange period replace the note with cash from a different source.  

    When you do this your 1031 account is fully funded so you can purchase your new property and complete the exchange getting full tax deferral of all gain and depreciation recapture.  Then outside the exchange you have an owner carry note that has no gain in it.  So the income is tax free other than the interest portion coming in.

    Not everyone can scrape that kind of cash but when you can it can make for a very sweet owner carry deal.

    The 1031 Investor5140 Reviews
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    1Reply
  • Marlina EckelPro Member
    Rental Property Investor 路 Cotati, CA 路 Member since 2017 路 52 posts 路 21 votes
    6y

    @Dave Foster, wow that sounds interesting.  I am hesitant about owner financing after reading about the 2 year foreclosure process in NJ. I don't know that I would want to carry the risk.  I will have to see how this all begins to shake out when I proceed.  The idea you share is one that I will keep in my mind. I'll reach out if I have questions. Thanks for contributing!

    1Reply
  • Michael Molina
    Member since 2020 路 5 posts 路 0 votes
    6y

    Im looking to purchase a home using owner finance. But I鈥檓 not 馃挴 sure where can I find homes. Is there a market for or I have to get lucky? I鈥檓 looking to pay it off In 10 yrs  and my monthly budget will be no more then $2,000 per month. 
    low Dow pay if possible... can any give me advice. I鈥檓 looking for 2021 

    0Reply
  • Michael Molina
    Member since 2020 路 5 posts 路 0 votes
    6y

    @Michael Molina

    0Reply
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