Owner Finance

X-Tennessean

X-Tennessean

Well-Known Member
Joined
Jul 14, 2009
Messages
1,872
Anyone with experience in owner finance offer some advice?

I have a place I am going to sell and considered this as an option. Looking for opinions or do's and don'ts.....

Any other advice when it comes to the financial aspect please throw it my way.
 
M

Mattt

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Joined
Oct 29, 2015
Messages
1,452
Location
Cleveland/Dayton tn
Best money I've ever made. Only issue I've had to chase is making sure they keep it insured. I require proof every month with payment and if it lapses they can be subject to foreclosure. To be fair to all involved I close with a title company and make sure everything is recorded,title insurance and so on.the bigger the down payment the better the interest rate. I wouldn't go below 7% or so depends on how bad I want rid of the property.
 
X-Tennessean

X-Tennessean

Well-Known Member
Joined
Jul 14, 2009
Messages
1,872
Sent you a message Matt, thanks for the reply!
 
7

7X57

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Joined
Dec 5, 2016
Messages
268
You'll need a Note, Deed of Trust, and an Amoritization schedule. The Deed of Trust will need to be recorded. The title insurance may not be of benefit to you as you are now the lender. I'm assuming you purchased title insurance at the time you bought the property. It would be best to go through an attorney. This should cost less than $500. I would also suggest including the taxes and insurance in the monthly payment and you pay those annually. That'll give you piece of mind that your property is secure.
 
J

Jon54

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Joined
Dec 16, 2014
Messages
3,210
Location
Germantown, TN
Get a real estate lawyer to draw up the deal. Not only get proof of insurance but also make sure they pay the taxes. If you’re selling it for a profit, talk to an accountant about whether it makes sense to do an installment sale where you spread the gain over the term of the note. Lastly, get some cash down. Make the buyer have some skin in the game.
 
L

landman

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Joined
Nov 15, 2009
Messages
5,200
Location
TN & Western KY
Don’t do it Unless you do a Land Contract, that way if you have problems you don’t have to foreclose, it’s stays deeded in your name until the note is paid off
 

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