full owner financing

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!

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.

: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 ??


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.


Scott Miller

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?

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?


Scott Miller

P.S. If you are the bank, you can create whatever terms you want (6 months, etc.)

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.

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.

: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

: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

Who do you sell the note too?

: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