Owner finance?

How can I set up owner finance for a property if I have a morgage on it. I am in Florida. The morgage is at $90,000 sell price is $120,000 at 3% higher then I pay.

simple really

First ask for at least 5 % or more as a down payment

Second do a wraparound mortgage and make it for at least the amount of time you have left on your mortgage now

Best is to have it run out a few years past

Third after the buyer has signed the contract and you have closed start looking for a note /mortgage buyer to cash you out

And you have done it and have made a clean break from the property

One more step; use the proceeds from selling your note to payoff your existing mortgage then you are clear from the property. If you chose not to sell the new note you can collect payments and use the funds to make your original mortgage payment keeping the spread.

Selling your Note is OK but keep in mind that all Notes are bought at a discount. In FL I’m guessing 20% off the top. Notes bring in a lot of interest income so maybe you should keep it a while then sell it. One other thing is that you don’t have to sell all of it if you don’t want to. It all depends on if you need the cash now or later. Don’t forget about the TVM. Herbster

HEY we are all right It all is a matter of what your needs are now

And if you can waite for the big pay off or need out now

I have never done a wrap around. Do I have a closing? If so, want the mortgage company find out?

I want to hold on to the property. The extra income would be nice. Then if they cant come up with the ballon I can do it all over again.

There are a couple of articles on this site under the Notes section. they will give you a good understanding of Wraps(wraparound mortgages).
If the buyer is unable to cash out by the balloon time its not to easy to get them out. You’d have to foreclose and they might claim equitable interest in the home. Who do you think the judge would favor? Herbster

That was another worrie of mine.
What about a land contract or contract for deed.

Owner financing is a land contract or contract for deed. The verbage is just different from state to state.Herbster

They SHOULD claim equitable interest. That’s one of the selling points and benefits to the buyer. You make your money 3 ways with the down payment, the extra monthly cashflow and the agreed future price.

Your current numbers:
$90,000 (your current mortgage balance)
$900 monthly payment

Buyers contract to purchase 5 years from now:
Sales price $130,000
Monthly payments $1100 (you keep the difference of $200 each month)
Pay off balance <$90k and you keep the difference of at least $40,000

or am I missing something???

A land contract is similar to owner financing but not the same. When you do a land contract or contract for deed title does not go into the buyers name untill the amount is paid in full. Owner financing strictly speaking you would take title at closing.

You do get title it just comes with a lein attached. Its an installment sale similar to a car loan. herbster