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Rent VS Financing as Landlord VS Banker

By
Real Estate Agent with ABEK Real Estate

If you are in your retirement years and you are tired of chasing your rent, making repairs, screaning new tenants, and all the stress related to property management? Maybe it's time to think about selling and becoming the banker. Yesterday, I was asked this very question by a client in her late 60's and my answer was to SELL! Sell! with owner financing, keep the income and let someone else have the headaches. In many cases, you may have a tenant that will be willing to buy the property. Look for a minimum of 10% down, an interest rate of about 7% apr, and a 10, 15, or 20 year term with a pre-payment penalty. Not always the best choice for properties in areas with high growth potential but worth looking at. The principal and interest combines for a pretty good return.

 

Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

We all will get there at some point and will not be able to keep up with high paced property management. Time to pass along the work to the next generation! The average age of people who buy is 38!

Jun 06, 2014 01:42 AM