Owner-Financed Fixers-How Do I sell?

I have an idea to buy low-priced fixers for ~$25k-$50k (there are plenty where I live) and flip them as-is to buyers for $45k-$75k with ~$5k down @~10% int for 360/mo with a 5-year balloon. I can buy these with 6.75% commercial money w/15% down for 360/mo w/5-year call.
I’m thinking about being a bank as opposed to a landlord because I believe there would be fewer contractor/tenant headaches (time is at a premium right now due to new baby).
First of all, does this sound like a good business model? If so, then how should I sell these? I want to maintain as much control over the property as possible (i.e., keep the title in my name).
In past postings, PropertyManager has stated his disdain for Land Contracts. Is this still true? How about a lease option whereby they could fix-up the property then sub-let to a tenant, or live in it themselves (with the understanding that THEY are responsible for all “property malfunctions”?

Any other suggestions?


A land contract will still give them equitable title, meaning you’ll have to foreclose if they don’t pay. You may have to do the same thing even with lease option. I wouldn’t L/O a property and allow them to sub lease. You’re asking for problems. You are probably better off taking your line of credit (I assume thats the commercial $ you mentioned) and just flipping some houses and reinvesting profits. Less risk that way. You’re kind of playing the role of hard money lender. Hard money lenders aren’t doing so great right now…at least where I am. In fact, investors are walking away from properties right and left and the hard money lenders are losing their A#@S.

Thanks Lucky for the advice. Actually, after thinking about it a little more on my own, I kinda came to the same conclusion.
As far as your comments on the hard money lenders; how can they be losing their shirts if they lent right with the correct LTV’s? Aren’t they covered if they have to repo a house because of the equity in the home? Isn’t that the business plan of a hard money lending company?