BGOL Homes: Owner finance
- Thread starter dHustla
- Start date
This is a very, very broad overview... I'm sure others know more and will chime in soon, as well.
No, you do not need an agent.
Craigslist is a good place to find homes and owners which may be willing to owner finance.
I've made a conscious effort to only buy homes that are owner financed since 2010. The process is similar to a regular mortgage in many ways.
You do title search and closing thru an atty just like you would a mortgage. The deed will be recorded in your name and filed at the courthouse just like with a normal mortgage. The biggest difference is that u pay the owner, then the owner pays his mortgage( if he has one). This also means that if the owner defaults on their mortgage then you lose the home. You can prevent this by doing an escrow account thru the atty office (you pay the atty and the atty pays the mortgage.)
The good thing about owner financing: 1) Being that the house is deeded to you, You can live in it, rent it out, and even sell it as long as the original mortgage is satisfied at the closing of that sale. 2)Most of the time there are not credit requirements( most of them assume that your credit isn't perfect anyways). 3) They're also slack on job information and income qualifications. 4) Sometimes if the home is owned free and clear, You can sometimes convince the owner to finance the home at cost with no interest (most of these owners are desperate just to sell the home and don't want to deal with the house or tenants anymore... So low or no interest is possible.
This is just a start... This is just what I've experienced in the last 5 years. If you need more depth, pm me... I don't mind helping
No, you do not need an agent.
Craigslist is a good place to find homes and owners which may be willing to owner finance.
I've made a conscious effort to only buy homes that are owner financed since 2010. The process is similar to a regular mortgage in many ways.
You do title search and closing thru an atty just like you would a mortgage. The deed will be recorded in your name and filed at the courthouse just like with a normal mortgage. The biggest difference is that u pay the owner, then the owner pays his mortgage( if he has one). This also means that if the owner defaults on their mortgage then you lose the home. You can prevent this by doing an escrow account thru the atty office (you pay the atty and the atty pays the mortgage.)
The good thing about owner financing: 1) Being that the house is deeded to you, You can live in it, rent it out, and even sell it as long as the original mortgage is satisfied at the closing of that sale. 2)Most of the time there are not credit requirements( most of them assume that your credit isn't perfect anyways). 3) They're also slack on job information and income qualifications. 4) Sometimes if the home is owned free and clear, You can sometimes convince the owner to finance the home at cost with no interest (most of these owners are desperate just to sell the home and don't want to deal with the house or tenants anymore... So low or no interest is possible.
This is just a start... This is just what I've experienced in the last 5 years. If you need more depth, pm me... I don't mind helping
its a trap
would you buy a car, from a buy here pay here at 29.9%?
just because the saleswoman got a nice phat ass?
get your OWN finacing, or bank loan. HUD etc.
the real KEY is using "creidt unions" NOT a bank..
credit unions are not for profit banks, where its members are the shareholders. (ie your lower ratse)
but they use the same lending and federal rules, so your credit report still must be half way decent.
learn the terms DTI, and utilization, are and master YOUR credit report.
if your credit it bad, FIX it.
creditboards.com will help you solve ANY credit issues. (except student loans)
would you buy a car, from a buy here pay here at 29.9%?
just because the saleswoman got a nice phat ass?
get your OWN finacing, or bank loan. HUD etc.
the real KEY is using "creidt unions" NOT a bank..
credit unions are not for profit banks, where its members are the shareholders. (ie your lower ratse)
but they use the same lending and federal rules, so your credit report still must be half way decent.
learn the terms DTI, and utilization, are and master YOUR credit report.
if your credit it bad, FIX it.
creditboards.com will help you solve ANY credit issues. (except student loans)
I've done several deals with owners that provided financing. It's great. Some owners like to use a realtor. Make sure you have a great title company that knows what they're doing. I pay monthly while I rent out the house for more than the note. Eventually I'll own the house free and clear for free.
if you buy using owner financing. and the owner has a note (mortgage) , and he gets foreclosed on. you are OUT of luck, no matter how much you paid down. no matter how much you paid on time.
you will only get to rent the property at the same monthly payment for a few more months.
you will only get to rent the property at the same monthly payment for a few more months.
im going to keep it 100 for you, the hustle from the owner side is most people dont finish off the mortgage and they get the hose back to repeat. I have a couple properties and im running this hustle (although I tell the people the same thing I'm telling you ) I tell them if they stay in the place 5 year, or 60 rent payments ill let them buy it with 5k down, now I dont have to fix anything anymore and I might go up 5% on the payment,
its a 15 year note. So I copped the house for 20k, made $750/mth x60 = 45,000, took 15 years or payments(15*12=180) * 790 = 142,200+45000 from the 5 years. Is 187,200 from the house IF you finish it out.
say you make it 10 years in, ill get all that $$$ then start over, now ill do 3 years before that next person STARTS the process again. So there is a HUGE benefit for me as the owner.... odds are not in your favor as the buyer.
not saying dont do it, im just saying know what you are gettgin into, and define things like how many lates before they can take the house back. its some shady people out there. I do 3 lates, but I even let the people sublet the place as well. Risky but nothing ventured nothing gained.
its a 15 year note. So I copped the house for 20k, made $750/mth x60 = 45,000, took 15 years or payments(15*12=180) * 790 = 142,200+45000 from the 5 years. Is 187,200 from the house IF you finish it out.
say you make it 10 years in, ill get all that $$$ then start over, now ill do 3 years before that next person STARTS the process again. So there is a HUGE benefit for me as the owner.... odds are not in your favor as the buyer.
not saying dont do it, im just saying know what you are gettgin into, and define things like how many lates before they can take the house back. its some shady people out there. I do 3 lates, but I even let the people sublet the place as well. Risky but nothing ventured nothing gained.
You gone get that I8 ,if you dont already have it. Good shit.
appreciate that homie, I want us all to get it... but some of us won't get out of our own way...
gems in here
