Sellers: Offer Owner Financing and Allow Your Buyers to Use The $8000 Tax Credit UPFRONT!

By
Real Estate Agent with Success Investment Realty

The FHA is allowing it and so can you.  Savvy Sellers  can Allow Buyers to use the $8000 First Time Homebuyers Credit Upfront. 

Here is one example:

Tenants bought for the price of renting - with no down payment. 
Last November, Glenn bought a bank owned condo for $40,000 cash. He then rented the condo to Sam and Donna for $800 per month.   Sam and Donna would love to buy -  but they don't have money for a down payment and it is hard to get a mortgage on condos.  Glenn would consider selling the condo with owner financing - but he wants at least 10% down payment. 

Glenn's Solution:
Sam and Donna meet the requirements for the First Time Homebuyers Credit.  Glenn SOLD them the condo (using a contract for deed) for it's current market value ($80,000) and allowed them to pay the down payment in 30 days (when they get thier refund check).   Glenn seller financed the purchase with payments equal to Sam and Donna were paying in rent.   The buyers and seller did most of the paper work themselves and the only additional expenses were the attorney (both had an attorney review the contract for deed) and the doc stamps/recording fees. 

Search Central Florida Homes For Sale at:  www.OrlandoSearchMLS.com

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Ambassador
1,491,699
Jim Crawford
Maximum One Executive REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

Interesting concept.  Contracts for deed are not allowed in some states.  You are right o have a lawyer review the agreement.

May 13, 2009 01:39 PM #1
Rainer
478,183
Not a real person
San Diego, CA

My wise old grandmother once said, "Where there's a will, there's a way."

May 25, 2009 03:53 AM #2
Rainer
138,377
George & Arlene Paukert
Road to Wealth, Inc. - West Palm Beach, FL

Very smart owner, very smart. When I was selling real estate 90% of my homes sold were done with owner financing and we had far less complications and I'm guessing that would be even more the case today. This is why I tell everyone they need to get in to owner financing, less hands on the money, they less chance of the deal falling apart.

May 27, 2009 11:32 AM #3
Rainer
14,164
Wanda Phillips
Success Investment Realty - Altamonte Springs, FL
Very True! Sometimes, I wonder if we overcomplicate Real Estate. I started in Real Estate in the early 80s as a stay at home mom - when no one had access to computers or internet and no one was selling seminars on strategies or techniques. I bought and sold just researching the title at the courthouse - then filling out deeds from the local Stationary store. I think if I had seen all the information buyers and sellers get bombarded with today (real estate buying and selling strategies, seminars, books, etc...) - I would have been too intimidated to try doing it by myself.
May 28, 2009 02:04 AM #4
Rainmaker
452,299
LLoyd Nichols
Premier Florida Realty of SWFL - Fort Myers, FL
SW Florida Homes

Wanda: that $8,000 tax credit is a huge plus but I have to say that your concept is very clever.. now they will have the chance to own a home and pay the same as rent..pretty cool. Very slick seller.

Jul 10, 2009 04:49 PM #5
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Rainer
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Wanda Phillips

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