Posted by Jim (Alaska) on March 30, 2000 at 13:25:08:
Thanks Mike,
That helps to know I am on the right track…I sent you email.
Jim
Owner Finance vs. L/O Thoughts? - Posted by Jim (Alaska)
Posted by Jim (Alaska) on March 30, 2000 at 10:57:25:
I know the advantages and strength of L/O, but want to ask if you think that seller owner finance would work as L/O when I turn the property to a T/B as well. I know that with owner finance you have to have money up front, while with L/O this is not as much of an issue. I am working on a deal that seems like a good candidate for a L/O from my side but the owner wants to do owner finance. It is two houses that are under comps by about 16-18K each.
Just wondering if there are ramifications to buying on owner finance and then me doing L/O to turn them.
If terms are the same, get the deed - Posted by messerb
Posted by messerb on March 30, 2000 at 16:12:49:
Jim,
If you can get the same terms from the seller with seller financing as you would with L/O (same downpayment, same monthly payment), go with seller financing and get the deed.
You can certainly sell to your buyer with either a L/O or seller-financing as well. Be mindful of Michael M’s point about making sure that the mortgage between you and your original seller does not have a DOS clause. If you’re writing up the purchase agreement, it most certainly should not have one.
Monique
Re: Owner Finance vs. L/O Thoughts? - Posted by Michael Morrongiello
Posted by Michael Morrongiello on March 30, 2000 at 12:23:19:
Jim:
If you can purchase with owner financing and the terms are acceptable then go ahead this way you have financing in place which can buy you time.
If you intend on selling the homes and “wraping” the owner financing so that you can earn a monthly spread then make sure the owner financing instruments do not have a (DOS) due on sale clause or at least allow a one time sale.
Michael Morrongiello