Best method to owner finance property in Ohio
So I am not familiar with all the Ohio state laws, etc. I have been doing quite a bit of reading the last number of days so hopefully no wise guy will tell me I should’ve just looked it up. 😊
In Texas due to the short foreclosure, timeframe selling properties on a note and deed of trust and swapping the deed over to the new buyer is the standard route for owner financing. In Texas lease options have been a point of contention and debate.
with that being said, I have used lease options in two other states that the buyer followed through and purchased the property by way of a lease option. I have a property that I am considering purchasing in Ohio and making available to an end buyer with some sort of creative/owner finance arrangement.
I would love to hear from some investors on their preferred method as far as lease options versus straight owner financing in Ohio.
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You could sell the house with a land contract or sometimes known as contract for deed. You would keep the title to the property until property paid in full and then the title transferred to buyer. There are very clear rules in Ohio with respect to land contracts which in my opinion is advantageous since they're clearly spelled out. One thing to be aware of is that when buyers gets to 20% equity (or paying on time for 5 years) and they happen to stop paying then you have to foreclose. If less than 20% or 5 years then you could do a forfeiture which is faster than a foreclosure and less expensive.