Owner Financing Question - Posted by Dominic

Real Estate Investing Real Estate Financing
1

Posted by Randy on July 14, 2003 at 13:22:51:

Ask for 10%-20% Down payment.
Interest rate of 8%-9% (or more)
Require a credit check on your buyer.
Typical CFD (Contract For Deed) 30 years with a 5year balloon (Full loan is due)
Your buyer gets the tax write off for interest and real estate taxes.
The Deed remains in your name; the CFD is recorded on the title giving your buyer an equitable interest in the property.

Be careful, sometimes selling on contract can trigger the Due On Sale Clause on your mortgage requiring the balance in full. Contact an attorney or other experienced real estate professional you trust.

2

Owner Financing Question - Posted by Dominic

Posted by Dominic on July 14, 2003 at 12:05:24:

My home won’t sell at existing price and I can’t afford to lower. I am thinking about doing owner financing but I don’t know how.

Price $250,000
My payment $1695
My rate 5.95%

What should I ask for when doing the financing?
How long should the term be?
Who gets the tax write off?
What happens to the deed?

3

Re: Owner Financing Question - Posted by JT

Posted by JT on July 14, 2003 at 22:09:06:

Dominic,

Why don’t you put your property into a Landtrust in YOUR name and then simply assign a beneficial interest to your buyer.

You could ask for 10% down, set the trust up for 3 to 20 years (or longer) transfer all the fee simple bundle of rights to the buyer, preserve all your existing equity, avoid DOS issues and when the trust terminates split equity build-up with your buyer 50/50.

JT