I am both a broker and investor and will be glad to provide you additional details if you want to email me privately or call, as the discussion will be lengthy.
Guy E. Gimenez
Broker / Investors
The PowerHouse Group / Globe Assets
The owner sells the home at a profit.
The owner makes more money on the financing.
The owner has a marketable note (performing asset) in three years
The buyer does not participate in the care and feeding of the big banks.
The buyer has an opportunity to be an owner. (not true with RTO and Lease/options)
The buyer can be forgiven some previous financing missteps.
This is a great solution, but, don't be naive.
The water does have sharks.
Don't go in without someone looking out for your best interests.
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, Fl
Susie Kay, Realtor®
GRI, CHMS, SFR
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
Servicing your real estate need is my priority!
If your credit is fair and you have a decent down payment, please give me a call and I will be happy to speak with you and refer you to a lender who can assess your situation at no cost to you. If you decide to do this on your own, I would be very, very careful.
Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Ranked #1 by Buyers and Sellers (JD Power & Assoc. 2012) Call 512-261-4415
Thank you for being part of my day,
- - - - - - - - - - -
Owner/RealtorÂ®/Investor | Home Haven Partners
You have to think logically about this.
It really only works if the seller owns the house outright.
Very few people do.
If they still have financing in place it doesn't work and often will get both you and the seller in trouble.
It's very risky if the seller has financing in place already.
Sure lots of people think they have some way around it , but more often than not it's just a problem for the buyer and sometimes also for the seller.
I can probably count on one hand the legitimate owner financed deals I've seen, but I've seen plenty that were really messed up and I'm not sure even solvable.
If you are not ready to buy with bank financing, save your money, don't get ahead of yourself and get your credit cleaned up and save your money.
You should also make sure to obtain a title policy to make sure the seller is the true owner of the property. Also to make sure there are no other liens on the property. There are alot of other items that should be addressed but, these are all property specific. If there is a balloon what happens if the buyer cannot qualify? Who pays the taxes and when (don't assume anything).
Alot of seller finance utilizie service companys which collect the payment from the buyer and pay the taxes, insurance and the seller every month. They also make sure the payments are being made. They act as the collector or collection company. They act just like a banks service company (for the seller). They also report the tax information to both the seller and the buyer.
We have listed and sold several property's in our office owner finance. (We have only list one's that are lien free). We make them close at a title company and the buyer is provided a payment coupon at closing.
The rates sellers are willing to owner finance in the area varies (6-18%) So if you can qualify to buy a home through a bank do it. The traditional lending rate is very very favorable now.
Let me know there are 200+ homes on the MLS offering owner finance (they require a down payment normally 20% down).
Unless there is some reason you can not get a loan, I would look at a bank loan because interest rates are ridiculously low and you can get a 30 year loan. You can also be looking at fha loans with rates under 4% which will be assumable in the years to come and after rates go up and up these assumable loans will be RED HOT and help you sell later.