This week’s question comes from Cory on the Real Estate Rookie Facebook Group. Cory is asking: Owner financing would buy me some time to get the property rented and cash flowing as well as build some equity before taking it to my bank for conventional financing. Any tips, suggestions, stories on doing this?
Many real estate professionals have an opinion on owner financing (also called seller financing). Some love it, some hate it, and some just haven’t had any experience with it. Ashley has had some great experience not only owner financing a package of properties for sale, but also being the owner who has financed her property when selling it.
Here are some of Ashley’s suggestions:
Show the seller that you’re financially stable with some key documents
Work with the seller to find terms, interest rates, and payment options that work for you both
Ask the seller what they need to make this deal work for them
Draw up a letter of intent and attach an amortization schedule
Get it structured and drawn up legally with your lawyer
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).