We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
September 26, 2021, 01:26:05 am
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
September 26, 2021, 01:26:05 am
Home Help Search Calendar Login Register

Author Topic: full owner financing  (Read 2263 times)

Offline mw

  • Member
  • ***
  • Posts: 244
full owner financing
« on: May 30, 2007, 03:08:16 pm »
With a new baby on the way, we are thinking of getting a larger home.  My home is paid off, with a HELOC balance against it, that will be paid off soon as well.

I want to extract the most profit as I can from my home.  What would be the best way to offer full owner financing on it, and who handles the loan documents?  How does this work with escrow for taxes / insurances?  How do you determine interest rate...by credit score?  If so, is there a guide to follow?  What's the best way to screen potential buyers?

Any and all information to help me do this would be greatly appreciated!

Offline christopher w

  • Member
  • *****
  • Posts: 2237
Re: full owner financing
« Reply #1 on: May 30, 2007, 04:05:10 pm »
The most profit will come from taking a cash-out loan on the property and investing that money into other deals. Owner financing will put money in your pocket every month, but because of inflation that money will be worth less in 30 years than it is worth today. Why not take out a large chunk of cash and start acquiring other properties or invest it with a financial planner. You will be shocked at how fast it will grow when you start with a large chunk of money. Your tenant will be making the payment for you and the house will still appreciate in value every year.
Christopher W
C-214.923.5781

Offline real estate 001

  • Member
  • ****
  • Posts: 760
Re: full owner financing
« Reply #2 on: May 30, 2007, 04:52:30 pm »
 :cool okay   try this


 sell your home for the full apprasial   plus   at least 5%   

 the 5 % will be your down payment     once the owner financing  is all done and you can go to a good real estate lawyer  they can  get all your paperwork done and filed for you   
 the next step is to sell the note   and a new note will get you from 75 to 80 % of face value      you have funds at todays  value  and not at a less value in  xyz years       WITH a child on the way funds now  is better then may be funds later ??

 :beer

Offline REI4ROI

  • Member
  • ****
  • Posts: 803
Re: full owner financing
« Reply #3 on: May 30, 2007, 05:21:39 pm »
Seller financing doesn't have to fully amortized over 30 years---most private notes are structured as follows:

- I/O Payments only
- 1-3 year ARM based upon a 30 year amortization schedule---balloon in 1-3 years.

How can you maximize your profits with seller financing?
a.  Like the other poster suggested, sell at an inflated value.  Unlike conventional lending, you will not be confined by the appraised value or purchase price---the lower of the two guideline. 
b.  Offer an interest rate that delivers a higher ROI that you can get elsewhere with the same money. 

Regards,

Scott Miller
RE Investment Advisor
Weichert Realtors
[email protected]

Offline mw

  • Member
  • ***
  • Posts: 244
Re: full owner financing
« Reply #4 on: May 30, 2007, 06:43:47 pm »
The most profit will come from taking a cash-out loan on the property and investing that money into other deals. Owner financing will put money in your pocket every month, but because of inflation that money will be worth less in 30 years than it is worth today. Why not take out a large chunk of cash and start acquiring other properties or invest it with a financial planner. You will be shocked at how fast it will grow when you start with a large chunk of money. Your tenant will be making the payment for you and the house will still appreciate in value every year.
Everything you mentioned...I'm doing now.  The problem is, we desperately need another bedroom, so we will have to find another home.  I plan on paying cash for the next home, too, so that's not an issue, as I will be getting a HELOC to use on deals in the future.  The home we buy will be significantly undervalued, too, meaning I will have made money by moving up to a larger home.

More questions:
When I sell my home with owner financing...do I receive a check for the full price and THEN receive interest on the note?
Say my home sells at 225k.  If I do owner financing at 7% with 3% down (or 0 down) using EZloanz 3 year IO balloon 30 yr. amortization, how much will I actually net from the sale of my home?  What if I sold the note after 6 months?

Offline REI4ROI

  • Member
  • ****
  • Posts: 803
Re: full owner financing
« Reply #5 on: May 30, 2007, 06:52:44 pm »
When you agree to seller financing, you agree to be the bank---If you got the asking price at the table, you wouldn't be lending anything...

Have you considered staying where you are and adding a new bedroom & additional sq footage?   

Regards,

Scott Miller

P.S.  If you are the bank, you can create whatever terms you want (6 months, etc.)
RE Investment Advisor
Weichert Realtors
[email protected]

Offline marcus335

  • Member
  • ***
  • Posts: 342
Re: full owner financing
« Reply #6 on: May 31, 2007, 11:07:18 am »
You definitely want a 2-3 year balloon so they have to refi and buy you out.  That's when you get the big check.  If you live where houses sell quickly, then you may not need to use it at all.  Another option is to carry a seller 2nd.  That way you assume less risk but still attract more buyers.

Offline doston

  • Member
  • *
  • Posts: 33
    • Commercial Loans Made Easy
Re: full owner financing
« Reply #7 on: May 31, 2007, 12:37:08 pm »
Becoming the bank has a lot of inherent risks. If you do decide you go through with the transaction, you may want to consider having the buyer sign a quit claim deed which you do not record unless the person defaults. If the buyer defaults, then you simply record the deed and you own the property. This will save you the hassle of going through the foreclosure process. Your buyer should not have a problem with it if you explain it to them in simple terms.
100% Financing Secrets Finally Revealed
These methods work in the real world.
Click Here for the Free Report

Offline real estate 001

  • Member
  • ****
  • Posts: 760
Re: full owner financing
« Reply #8 on: May 31, 2007, 03:48:36 pm »
 :cool   OKAY   first off  if you sell your  1st note  you make on the deal  who cares  if the buyer fails to pay later you have been paid and cash out of the  deal unless   you have a 2nd then  you will have some worries but they are sell able as well


 AND yes you can sell any part and or all of your note and you will get the bucks then  and there when the note is sold !!!   IF you want you can make your note any way you want  as stated you are the bank  ////and just like banks you can sell all or part  sell all but the balloon if you put one in  or sell it all  it is up to you   


 I do not want to sound upity but  THIS IS NOT ROCKET   _____   you know the rest


Offline real estate 001

  • Member
  • ****
  • Posts: 760
Re: full owner financing
« Reply #9 on: May 31, 2007, 04:13:44 pm »
 :cool    JUST  note here  selling  your home for less then 5 % down on owner finance makes it  not very saleable  as the note buyer will see no real value or reason for the buyer to skip payments if things got tight     SO never never  sell your home on owner finance with less then % 5    down and never for %0


 AS i have  said before  we have been buying and selling with owner finance now for over 5 years  /// and selling our new notes for the values stated above

 BUT this is not all we do but we have become very good at this  owner finance thing and note sales  :biggrin

Offline black95gt

  • Member
  • ***
  • Posts: 302
Re: full owner financing
« Reply #10 on: June 01, 2007, 10:21:26 am »
Who do you sell the note too?

Offline real estate 001

  • Member
  • ****
  • Posts: 760
Re: full owner financing
« Reply #11 on: June 01, 2007, 12:54:28 pm »
 :cool we have a contract with a company and they buy all the notes we send as long as they have a few  things in place  1 ) being at least 5 % down



 




SMF 2.0.15 | SMF © 2017, Simple Machines