Posted by Bud Branstetter on November 24, 1998 at 12:03:51:
Typically when you offer owner financing you sell above market price. Not that you have to, you just make more money that way. Will the house cash flow at $800 a month? I would sit down with the young couple to determine what caused the bad credit. to insure that it will not happen again. Then I would try to determine if they would increase their income in a year or two so that they could qualify for a 95K loan. A land contract with a balloon in the future has about the same effect as a lease option. The main difference is how the laws in your state look at them if it doesn?t work out. If you have not done it before then it is best to have your lawyer prepare the contract or review one you acquire.
Will you owner finance me with a sales price of 95K with 4K down at $800/mo? If you say yes I?ll fax you the contract tomorrow.