Question #2 - Posted by MikeSC
Posted by MikeSC on March 25, 1999 at 20:16:34:
First, I would like to thank all of those that replied to my question last night. Here is question #2. ( Maybe this will be a serial…MikeSC’s daily point to ponder hehe )
Lets assume for the sake of arguement that I have purchased a property and have decided to sell it. Let also assume that I have a buyer that wants me to owner finance it for him. Lets use some easy numbers. I sell it for 50K and the buyer has 5K for a down payment. Lets also assume that I want to keep this note BUT I want to have the option to sell it if I need/want money. What requirements should I have for my buyer? How strict should I be on credit terms? Won’t note buyers mainly look at LTV and payment history? I realize that these buyers will generaly not have stellar credit nor do I expect them to, but I also don’t think that I should just accept anyone.
Once again, thanks in advance for your help. It is much appreciated!