Re: Seller Financing Question…for Notebuyers too - Posted by DanM(OR)
Posted by DanM(OR) on January 24, 2000 at 10:42:07:
I actively invest in notes and homes and this deal is pretty common. However, I wouldn’t do this unless it was secured by some sort of property. A note really is only as good as the property it is secured by. Unless these folks were a family relative you really have no interest in complying with them.
You should always prepare for the worse case scenario. Everything in RE is Risk vs. reward. In this scenario you have all the risk and not all the reward.
If they own another property, ask them if the second could be secured by that property. That would allow them to accomplish what they are trying to do.
Make sure that there is enough equity in that home to secure you. How much is enough depends on your comfort level. I wouldn’t go higher than 85% of the value. Consult a realtor or real estate attorney to do a deal like this.
Best of luck on this!