Posted by Michael Morrongiello on May 04, 2000 at 23:25:08:
Try to get 10% cash down from the prospetive buyer if you can and make sure they have reasonably strong credit and employment stability. Here is a what if scenario based upon “best case”
Sales Price $114,000.00
10% cash down - 11,400.00
Balance to be financed $102,600.00
TERMS for the 90% owner finaned loan; 11% (if you can get it) amortized over 360 months no balloon payable $977.08 P & I per month. No prepayment penalty in the note so the buyers can refinance at ANY time to the best rate they can qualify for in the future.
That note with an A- credit buyer can be converted into approx. 94% - 95% of its balance as a CASH payout to you at closing (this equates to $96,400.00 -$97,450.00) + you keep the $11,400.00 cash down payment proceeds.
To your success & a QUICK home sale the owner financing way…