Owner Finances, best way to find one

You can look for properties that advertise the owner will finance or sell on contract. Also, if you locate properties that are for sale by owner you could inquire if they would consider financing. Usually property owners that have had their property on the market for more than 6 months may fall into the more motivated category. I hope this helps. Believe and Achieve! - Joe

Hello Everyone, i have been a DG Member for almost a year now , and its my first time joining.

I have a home that am thinking to purchase subject to Existing finance , already negotiated and explained the process to seller .

Here are the numbers , Seller Owes #261,ooo , PITI @ $2250/mo , house value is around $275,000.

He agreed to pay 3 months worth the mortgage payments from the day he vacates the property.

Here is the scary part , the neighborhood is nice , but not very high demand area, and tooo many houses are available for sale around his house , and too many foreclosures going on .

So what you guys think ? any advise would be great , am supposed to sign on Wednesday .

by the way this is my FIRST Real State deal am going to be doing ! i have never sold or bought a house before.

but i have been in the circle , as far as having a solid buyers list and realtors and such , but havent yet closed on a deal .

SO what is your guys opinions on this deal ? am really skeptical about it now , that its getting close to sign papers .

not sure if am doing the right thing , or if for some reason i couldnt find a tenant/buyer for that house , i sure CANNOT afford a$2250 mortgage pymnt !

Please Advise

Thanks

h

I think I am star struck for you to respond to my post. Thank you so much for your wisdom. I wanted to make sure I was going about it the best way. I have been looking at properties that have been on the market 150 days or more, so it seems that I am on the right track.

How did it go, did you seal the deal. Don't be afraid your seller is covering your payments for three months. You have 14K in equity to negotiate with for your buyer. Decide how much money you need from this deal and get the property sold in the 90 days.

Get this done sooner rather then later in case your buyer needs to apply for financing, this could cut your time frame in half.

How did you convince your seller to cover three months of payments?

Hi,

If I was in your shoes; in that specific type of market, I'd take a good look at the neighborhood, ask myself, if I bought 5-10 houses here, could I make a score?

If you can make a difference with your business accrue; fixing the area up, with a longer term, holding time for the project,(3-5yr). Your structure, (i.e.) plan for the property is to do a flip, you'll have a way tougher time selling the home if its only one home your doing.

So, if the property appreciates 10% over 5 yrs. statistics -(math) will show that your money would earn more if you had 10 properties instead of only one.
To make a good return you would be better off; making a minimum investment, of 3-5 properties in that area to have any kind of impact.

You surely won't get as high appreciation with one property as you would with an minimum investment in the 3-5 property range. For tax reasons; these properties qualify for all kinds of easy private funding, as well as Federal, State & municipalities tax advantages & grants.

Way the pros & cons. If your intent was a fast deal; modifying a plan, is nothing new in business. You have to do it almost everyday, or at least I do.

The key is to weigh the interest costs of the ingriedients discussed to all costs associated with your specific financial structure/stratergy with lenders. If your paying high interest while trying to sell, is not a good idea or a set-in-stone stratergy, in low end areas. Don't get me wrong. Some areas in Boston for example, Roxbury, Dorchester, have low ends, but these locations always get appreciation. Ive seen 3 family prices double & triple at different stages in the business economic business cycle, just recently, in the past 10 yrs. for example.

If your an expert in these types of areas; and, you can deal with the turf, you can make significant amounts of money. Decisions get made over location. Thing to keep in your thoughts is the location - (i.e.) if its a beat up house in the lower end of the lower end of the hood, is another key

Weigh the costs of A. Your financial costs to start and complete construction. B. ingredients to finance the contruction and end result; wrap into long term funding, when the plan is done. Usually set at the closing, along with construction fund releases, (etc). The finnacial plan for the property.

If you have to pay 10% for the borrowed money - A. and B. Its going to cost 20% with the ingredients relevant. Simply move on to the next one. Any deal is easy. It all comes down to the math. If B cost more or not enough for your time and investment, and no tax help let it go. Theres plenty of deals out there.

Its a little more than just A & B. You can't do everything at once. Buildings go together piece-by-piece; business is strctured in a simalar fashion. Weigh your time to get to locations, there still only 24 hrs. a day.

"Perfection will come through practice". Do as many deals as you can and gain all that experience on a daily basis.

Hit us back, and you'll see why, Americas the greatest country in the world.

Kevin Duffy

One great way to find sellers that are willing to do owner finacing is on craigslist. First, you click on "real estate for sale" in the housing section. Second, at the top of the page it will ask you to search for -blank. In that blank you will put the word "owner financing" the next section is a gives you the option of a drop down menu in that section choose for sale by owner. You should be able to find several people in your area willing to go owner financing! I hope that this information helps!

Either way its the same. If you ask me its either you pay a down payment fee or the owner gets paid at the end of deal.

Actually, one is based on your credit and one is not. One you can simply walk away from with only losing your down payment if the deal is structured right and the other could haunt you for at least 7 years if you are in default and loose your down payment and be clipped back for deficiencies if there are any! There are great differences.

Now a days on both types of loans you will be providing a down payment. I have had sellers very motivated to do deals and not require anything for a downpayment. For the most part you will not be able to get away with not putting down some money to get a loan from a bank. Owner finance does present great opportunity!