Free & Clear Home

6 Replies

What approach or direction should I take when dealing with a free and clear home? Owner financing is available

@Shanda Williams

What is your "end game?" as an investor, flipper, buy n hold?  If you just want cash get it under contract and sell your contract (make sure your contract says "assignable."

My one question is: If it's free n clear (you did your due diligence) why would the seller not do a traditional sale instead of offering "owner financing?"

Happy Investing

Originally posted by @Shanda Williams :

What approach or direction should I take when dealing with a free and clear home? Owner financing is available

 Welcome to BP. 

Why would your approach be any different than if the home wasn't free and clear? Wouldn't your Offer be the same, based purely on your calculated good investment numbers (which should already take into account any amounts their Bank and County are breathing down their neck for)?

The availability of Owner Financing may just be a bonus that can be marketed to your end Buyers. All the best...

Originally posted by @Brian Gibbons :

@Shanda Williams

Many Realtors will make an installment sale look not attractive.

Here are steps I take to make installment sales attractive.

3 columns

1. Listing with an agent and paying the costs to sell

2. Renting and waiting and dealing with tenants

3. Seller Financing - Installment Sales

Download Sources to Educate the Home Seller on Installment Sales

 What do you think is the advantage Brian other than a higher sales prices with interest? I've read some of your info, most went over my head, but it just looks like you can put off paying taxes, that you have to pay anyway. Anything else? Again, I did read other points but they just went over my head. Maybe you can explain a good benefit clearly. I'm just curious. I don't think that a higher profit for a motivated seller is insufficient.

@Benjamin Cowles

The link above shows installment sale information from the Internal Revenue Service IRS and you do need to study it

For an owner that has a free and clear house, selling with an agent can cost about 10% of the value of the house

An Installment sale can get them interest on an investment they understand and have faith in with no sales costs

Originally posted by @Brian Gibbons :

@Benjamin Cowles

The link above shows installment sale information from the Internal Revenue Service IRS and you do need to study it

For an owner that has a free and clear house, selling with an agent can cost about 10% of the value of the house

An Installment sale can get them interest on an investment they understand and have faith in with no sales costs

 Thanks again!

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