The process can still be done successfully and legally (with the help of a knowledgeable & ethical Real Estate attorney who is well-versed in "asset protection"). I happen to work with one of the best.
I can help you out. Give me a call.
You are earning interest now, front loaded like the banks do. If you carried the note for 30 years, you would earn pretty close to 3 times the value of the home.
My grandfather used to say... "Rich people earn interest, and poor people pay it." Now you get to be the bank making all the money.
And if they don't pay... you foreclose on the property... and sell it again.
But, unlike the landlord... when the toilet does not flush at 2:00am... you won't be getting a phone call. :)
It's not a bad deal at all. It almost makes you wish you had a ton of homes that you are owner financing... doesn't it :)
Jason C Campbell
Option One Real Estate
210-389-5266 . http://www.SAHomeExpert.com
Owner financing is not like having a rental property. You still have to collect the payment each month, but you are now the LENDER instead of the LANDLORD. You are not responsible for repairs or any of that fun stuff. You just collect the payment (with interest). If they default on the note, then you foreclose on them (as opposed to eviction).
Owner financing can be quite lucritive and there are many investors who make a lot of money doing that. You sell the home for more than what it is worth, and charge a high interest rate and collect a big down payment.
Lets say market value for your home is 90k. Sell it for 100k, require a minimum of 10k-20k in cash as down payment, then finance the balance over 20 years at 12% interest rate. Just make sure you do your own credit, background, and employment checks. Your real estate agent should be able to help you with everything except for drafting the loan documents. A real estate attorney would have to help you with that.
Best of luck!
Keller Williams Elite - Dallas
You shouldn't have to do that: They probably can't qualify for a Bank loan and they want you to carry them.
If you don't want to do that; tell your Realtor "NO".
Good luck and may God bless