Owner Financing

Extreme newbie question,

Is it advisable to purchase property with a conventional loan and then turn around and sell it carring the finance via Land contract.

Scenario:

(1) Purchase property 100% financed coventional mortgage = 125,000 @ 6.5 interest

(2) Find buyer needing owner to carry the loan and sell property with follwing terms:

         a.  145,000 @ 9.5 interest for 3 years
         b.  15,000 down payment
         c.   Baloon payment after 3 years for the balance of the loan

Is this feasabile or am I on crack?

Thanks

Your thought process is good. However the numbers are not going to work.

(1) Purchase property 100% financed coventional mortgage = 125,000 @ 6.5 interest

You are not going to find a 100% n/o/o loan with a 6.5 rate. Even with a blended 80/20 you might average in the mid 7% range.