Owner Finance - Posted by Robby Greenlee

Real Estate Investing Real Estate Financing
1

Posted by RGreenlee on February 07, 2001 at 09:31:33:

Thanks Terry,
I called a title company and to avoid the due on sale clause they said a contract for deed might work- any opinion? Your suggestion sounds a little more “solid”

thanks
Robby

2

Owner Finance - Posted by Robby Greenlee

Posted by Robby Greenlee on February 06, 2001 at 16:50:15:

I want to sell/lease my home and carry the note and get a loan to buy my next home; I can’t transfer title or my current loan will come due ($58,000 loan balance, estimated selling price $100,000). What should i do or where can i learn the best way to do this?

thanks

Robby
Texas

3

Re: Owner Finance - Posted by Ed Garcia

Posted by Ed Garcia on February 07, 2001 at 09:45:58:

Robby,

There are a few ways you could accomplish this task.

(1) You can take out a second mortgage against your house, pulling out the cash you need to go into your next deal. Then when you sell it, you can wrap the first and the second and carry the mortgage yourself. Another words, sell it on a wrap-around.

(2) Take out a second mortgage, again pulling out the cash to go into your next deal, and sell it on a lease/option.

(3) Find a buyer with 640 credit score or better, and sell it with 100% financing.

(4) Find a buyer with questionable credit and sell it with a seller carry-back.

(5) Terry from IN’s option, would be last on my list. The reason is because I come from the school of, “go with the devil you know, rather than the devil you don’t know”. Although I feel what Terry suggest can be done, I feel it’s restricting. If you can’t sell your note, you’re STUCK.

With the other ways that have been suggested you have many lenders to choose from. If you’re a note player, then you would feel more comfortable with the note market place, but for the average investor, I try to keep them in the lending community that they are more familiar with.

As it is, learning the different ways of financing can get confusing, and so for the beginner, I try to teach them concepts that can be used with lenders that they are already familiar with.

Ed Garcia

4

Re: Owner Finance - Posted by Terry (IN)

Posted by Terry (IN) on February 06, 2001 at 17:25:46:

Robby,

Here’s one option: Create 2 notes. The first would be enough to cover your mortgage and the down payment on your next property. The second would cover the remainder. Sell the first at closing and carry the second. If you need help structuring the deal, just email me.

Best wishes,
Terry(IN)