Sanrith Descartes
I was forced to self-deport from the /pol thread
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Home buying thread
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TJT
Mr. Poopybutthole
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Yeah it's becoming more common around here. I don't see too much of a downside doing this and I don't need the full equity immediately or anything so making interest on rent, effectively, and removing my duty to repair and whatnot seems pretty nice.
daughtreylaw.com
Owner Financing in Texas: How It Works and Why It's Popular
Discover the benefits of owner financing in Texas and how it offers a flexible alternative to traditional mortgages for both sellers and buyers.
daughtreylaw.com
Kithani
Blackwing Lair Raider
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I’m a total idiot but just my initial thought… if you really just want long term “income” from the sale of your house why not just sell the house and put the money in a 30 year CD/Treasury ladder and skip the risk of the new buyer defaulting?
Edit:
uhhh… this does not sound like a “benefit”
For Sellers:
Edit:
uhhh… this does not sound like a “benefit”
For Sellers:
- Faster Sales: Attract more potential buyers, including those with less-than-perfect credit
Kithani
Blackwing Lair Raider
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Evicting and repossessing a house sounds like a pain in the ass to me. I still don’t see the advantage over just investing whatever you make off the sale of the home.
Jysin
Bronze Baronet of the Realm
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I am by no means a housing expert, but I am in this camp here. Why deal with that mess? Take the cash from the sale and invest it and move on with your life.
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Sanrith Descartes
I was forced to self-deport from the /pol thread
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A seller's note generally goes to someone having an issue getting a mortgage (for various reasons). This being the case you can charge a higher than average interest rate on the note. Also, in a soft market, the seller not not want to wait months/years to get a sale if they have someone willing to buy now on a seller note. More than likely they either refi or sell it down the road so I doubt anyone is holding it to term.
Sheriff Cad
scientia potentia est
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I mean, "reverts to him" is a nice way of saying you'd have to foreclose, evict them, and then probably completely rebuild your now shit-housed property after they completely trash it, but yes, technically you are correct.
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Furry
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I've known about this a long time, because this is REALLY popular with illegals/immigrants, especially indians. Often the sellar has something they can hold over the person's head to keep them in line.
You could get a shithead and get fucked over, but that can happen with renting too. Since the person paying has skin in the game, that's probably less likely even.
You could get a shithead and get fucked over, but that can happen with renting too. Since the person paying has skin in the game, that's probably less likely even.
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Fucker
Log Wizard
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It only makes sense if the property cannot be sold via traditional means or if you are doing it as a favor to a family member. Investing the cash will get you a lot more money long term than owner financing ever will...and you will be done with the property after you sell it.Yeah it's becoming more common around here. I don't see too much of a downside doing this and I don't need the full equity immediately or anything so making interest on rent, effectively, and removing my duty to repair and whatnot seems pretty nice.
Owner Financing in Texas: How It Works and Why It's Popular
Discover the benefits of owner financing in Texas and how it offers a flexible alternative to traditional mortgages for both sellers and buyers.
You wouldn't want to have lower lending standards than a mortgage company, so why shoulder the risk and the long term loss of income...because reasons?
I guess I am missing something here.
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Kithani
Blackwing Lair Raider
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Sheriff Cad
scientia potentia est
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Not giving you shit here because you're right, just saying there's a lot of extra steps to that.
Banks also have entire foreclosure and repossession teams that do this every day, and even they take on a lot of costs when a foreclosure happens, they do whatever they can to avoid this outcome.
I wouldn't do owner financing for anybody, not even family. If you are planning to owner finance, I'd recommend just doing a lease-to-own type arrangement where all you have to do is evict them and you maintain rights to the property prior to foreclosure. And even that has a lot of risks, tenants rights are getting stronger everywhere. If you've only got one property, you're taking on a lot of risk and headache for a very small % on your money.
The problem is the court process for repo of a house vs a car I think. Getting the go ahead to repo a car is quick and easy but a house you will be tied up for months.
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Fucker
Log Wizard
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Trailer courts were built on this model. Take a big cash down payment, wait until the tenant misses a few payments, repo. Rinse and repeat. The money is in the down payment. An extension of this are RV lots and extended stay camping lots. Very seedy, high effort, low return business model. There's a reason why these things have vanished and nothing arose to replace them.
TJT
Mr. Poopybutthole
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There are tons and tons of RV lots, what are you talking about?
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