Owner financing... what is the climate for this type of transaction?

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I decided to work with someone that is heavy into moving his clients property with owner financing.  He tries to maintain a reasonable price satisfying both the owner and the buyer.  Term of about three to five years. While the credit challenged buyers with cash can find their way into homeownership the seller may be able to get a good price and get the mortgage paid as well.  Any thoughts?

Comments (4)

Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Walt, don't Have any California connections, but in general the the seller financing works for both parties I have a guy that will hold paper on his properties, It gives him income secured by a mortgage, and as long as things improve the buyer can refinance at the time of the balloon or if the buyer defaults the seller will have a property back worth more plus what ever payments were made in the mean time. It can be sold as a win - win to the right parties. Steve

Jul 13, 2008 11:44 AM
Walt LaDale
RealSell Companies - Rancho Dominguez, CA

Thank you.  That is what I was thinking.  Would like the property to be sold but at a price fair to me (wishful thinking in this climate), so I thought this might be a good option.



Jul 13, 2008 04:04 PM
Cedric (Ced) Reynolds
Covina, CA
(909) 263-4569

Walt,  good post.  Being the bank in a Real Estate transaction might be a way things will revert to because of the challenges banks are having and the way the federal goverment is tryingto tighten things up on lending practices. Home owners who are "free and clear" have a great option to do well.  The key for both parties today is qualifying each other.  Whereas in times past it was more about the owner carrying the paper would qualify the buyer.  Today both parties need to be reasonably sure they are sure they want to do business with one another.


Jul 15, 2008 05:22 AM
Walt LaDale
RealSell Companies - Rancho Dominguez, CA

Excellent insight Ced... I will keep that in mind as my transaction is being structured.



Jul 15, 2008 05:53 AM