I have an investor that wants to buy my rental property and wants me to hold the mortgage what are the pros and cons --76.98.xxx.xxx

First make sure they enough to put a decent down payment where at least 30 per cent or greater. Vendor take back mortgages have interest rates then the banks or other lending institutions. At least 2 per cent or higher. Next make sure the investor has a excellent credit rating as those who do not are more likely to be dishonest. Offer weekly mortgage payments as banks or other institutions want to hold as long as possible where the investor will build more equity with each mortgage payment. More equity after a few years less likely to default. If the investor has no down payment then walk away as they could milk the property then walk away. If the mortgage is open then the investor can easily get a mortgage from banks or other lending institutions. --99.236.xxx.xxx

I’ve done 2 in the last year and if I could all of them that way, I would. --24.152.xxx.xx

I hold quite a few mortgages,i buy and sell houses regularly and i have a handful of regulars who buy from me,i mark it up to what i want and usually let them have it with nothing down and sometimes no payments for 3-6 months for the regulars.Works well for both of us.For me it gets the houses sold quickly so i have limited holding costs and regular monthly payments,these are usually cheap houses needing quite a bit of work and the buyers do the work themselves.The biggest trick that works for me is to find out what other houses they own in the area then i call and find out if there property taxes are current on thse houses.Property taxes are the first thing to stop being paid when a landlord starts getting in trouble assuming they are not escrowed which i can figure out also.If a landlord has 3-4 houses and the taxes are being paid i get paid on the mortgage. --72.231.xxx.xxx

--76.171.xxx.xxx

Past experience shows this: never hold a mortgage on a property you would not be willing to take back. --99.103.xxx.xxx

Dino, everybody will tell you if they are paying them themselves or escrowed but in my state when the city pulls up the taxes they have a code next to it which tells them if the owner pays it or if a bank pays it and they can even tell me what bank paid it the last time it was paid --72.231.xxx.xxx

Following --73.120.xx.xxx

One possible downside is you won't be able to use small claims court to evict if the purchaser stops paying and doesn't leave. You will have to hire a lawyer to foreclose, and that can take a long time. --107.141.xx.xxx

Scott IN why hire a lawyer? In our state (and maybe others) I run the AD of Notice of Default in the legal paper and when time to cry out on court steps I have a third party do that. Once that's done I file for the eviction. --99.103.xxx.xxx

myob, what do you mean by "cry out on the court steps"? --73.120.xx.xxx

Things aren't quick and easy and especially aren't cheap in certain states. --98.237.xxx.xx

Thank you Nicole --73.120.xx.xxx