Posted by Jon Richards on December 28, 2000 at 19:59:46:
Jeremy
Your question requires a long answer that is not appropriate for email. However, you can call me at 415 824 1864. We are on CA time.
But before you do, we have a web site that you can read about owner financing to sell RE. (I assume you are not in San Francisco!). Go to www.create-a-mortgage.com. We refer FSBOs and Realtors to the site, and then get them to create the financing, then we buy PART of the note.
The concept is terrific, but difficult to explain unless you are clear about the advantages of selling a part of a note. If that makes sense, feel free to call.
Posted by Jeremy FL on December 28, 2000 at 16:01:07:
I have some questions on offering owner financing. I recently finished a re-hab and I have had many interested people. The only problem is they all want me to do owner financing. This is the first time I have run into this mostly because I usually do higher end homes.(I guess)
Anyway it is driving me crazy because I am about to accept this ridiculously low offer, with conventional financing. When I know I could get more than top dollar with some owner financing. Also, I could have flipped it in a few days instead of months. Please let me know how to accomplish this when paying cash for the re-hab and wanting that cash back for another re-hab.
It’s not like I am losing money by any means, but when someone is offering top dollar for your house the 2nd day it is on the market, you want to accept their offer!!
Posted by David Butler on December 31, 2000 at 15:21:13:
Hello Jeremy,
Both Mike and Jon have offered some excellent observations… one of Mike’s perhaps being at the heart of the matter - that being that owner financing can be the best tool available in selling your properties in many situations (but not always… just like anything else). And Jon notes that in your instance, the sale of partials may very well be the perfect answer for recapturing your investment capital, while continuing to build an estate (which also reduces a great deal of transactional and tax “friction”)… a device that is already very popular with “Lonnie Dealers” in the mobilehome investment game!
You might find it extremely helpful to invest $30 in William Broadbent’s OWNER WILL FINANCE, an excellent primer on the subject… and invest another $40 in Jon Richards’ CALCULATOR POWER, which will definitely bring you up to speed in mastering the financing game… and demonstrates a broad variety of creative, and sensible, deal structuring scenarios.
Jeremy:
The fastest way to sell just about ANY real estate property is to offer it for sale and also to offer to finance that sale as well.
I have been doing rehabs for over 20 years (now in over 3 states) and ALWAYS will offer my finished product for sale with OWNER FINANCING if I feel that is the most efficient way to market it.
Sell for top dollar, have little dickering over price, and expose your property to many more potential buyers that you could otherwise with traditonal real estate markteting methods. This is what OWNER FINANCING is all about.
The missing link the “closes the circle” for many seller is when they get the concept that even thought they are offering owner financing, they can sell a well structured 1st lien mortgage and STILL get a lump sum of CASH.
