sorry if this is a duplicate.

Need advice on selling with me financing the deal.

Recommended down and rate please. And what else?

Down- As much as possible. What you want is an amount large enough where the buyer won't Just walk away if anything goes bad or there is a downturn in the market. Also, if you decide to sell the note, any note buyer will evaluate the amount of equity in the deal as well as interest rate and the buyers ability to make the payments.

The one and only owner-financed sale we've done, we bought for 19K, sold at 38K, got $4500 down and are charging 12% interest. This was to someone who cleaned houses for a living and whose only verifiable income was the cancelled checks. She's getting a 2BR house for $400/mo principal + interest, so it was a win-win.

been at this for 30+ yrs. Never do financing unless you plan on staying an owner. That means getting the property back with owed debt- trashed- foreclosure and 4 evictions.

Most- all-- owners think "its the past owner who cares"!

My advice don't do it.

With that said I have sold some real dogs I owned and watched these 2 "investors" do all kinds of upgrades- new decking on a roof-- not just shingles they put on 3/4 plywood then re-roofed. New HVAC's even thought he ones in there were good. They did this on 6 SFH's they purchased from me with owner financing. A year later, as predicted, they came crying back that they aren't making any money what could they do-- well I suggested deed in Lieu of Foreclosure. We did 6 and I got back 6 brand new homes.

Then the kicker I found out they had a 30K insurance check for a fire in one home. I requested a copy of that check and low and behold it was made out to them and US. NOW ow did my signature get on that check that I knew nothing about? WHY did they bring it to a bank 100 miles from home to deposit? Oh the bank was owned by his buddy. Now the bank manager is dragged into this. See how it goes?

Keep it simple.

Get 10% or $10k down...whichever is more.

don PA rent to own option is still risky. You need two separate contracts. One is the Lease totally separate form option papers. Then set up the option rules and contract. I've done these also. We make sure there is no more owner financing asked for. At the end of 5 years of option money you had better kept great track of those funds. Lenders are looking out for anything quirky. Each payment documented.

ned AL Keep it simple 10% down-- if you can get 10% down why not tell them go to a bank? Lets remember ned the deal has to make financial sense. AKA : that means making something $$$ on it for those 10 yrs. 10yr note that will be next to impossible to do.

Doing owner financing on a 4 unit is much different than on a single family.

I would want 25% down and 9% mentioned above is not nearly high enough. I think probably 4% or 5% higher than market rates.

MYOB-

You are correct...needing 10k down, does, indeed, rule out A LOT (MOST) of prospects.

Rare, but there are indeed those who CAN do 10k down, but don't go to a bank because:

~they "scared" of banks/past bad experience w/banks

~or they have sketchy or bad credit or they THINK they do

~they have sketchy or undocumented income

Getting $10k down helps protect me against the cost of foreclosure / vacancy... Getting 10% is getting 4% more than my cost of capital.

10 years seems like good time frame to keep their cost reasonable, but also build equity pretty quick.

Plus, I just like the number 10.

I should mention that my formula really would be:

Get 10% above market price.

Get 10% interest.

Get 10% or $10k down.

Get 10 years of payments.

The combination of above market price with above market interest offsets the risk/hassle of potential foreclosure.

I've only done a handful.

Have a few made it all through.

1 Foreclose.

Thanks for the input.

MC-

Here are three reasons I might be "the one"

~They "scared" of banks/past bad experience w/banks. I'm not scary at all and they've had no bad experience with me.

~They have sketchy or bad credit or they THINK they do. Sometimes there are legitimate, explainable reasons for less than stellar credit.

I view most owner financing as being for soon-to-be owners who are "on the bubble"... almost bankable.

Investors who are willing to owner finance these, with careful screening, at above market premium rates, fill a void.

Ned, IMO anyone who has a reliable cash income but doesn’t report it to avoid paying taxes is a thief. If they would lie about their income, do you think they would be honest in their dealings with you?

Hoosier I think your first sentence is much off point here. This is why I think that way and its a little hard to understand for some. Calling someone a thief!!!!

This past weekend I was driving by the local soccer fields and the lots were full to overflowing. There were at least 30 people with signs running up and down the side walk holding them up. They said "FREE FOOD" Folks think about this-- free food for people & families. Then it hits me-- we just gave Ukraine 1.3BILLION dollars on top of 133BILLION dollars of our tax money to pay for bombs and now the last installment for food and medical and to cover the pay of Ukrainians. To a people who we have nothing in common with-- who are not our citizens and yet OUR people are accepting handouts from their neighbors-- do any of you find this totally Ludacris?

Then I thought back to the condition of our veterans and the scheduling problems they faced-- some vets died waiting on help but we gave our tax money -- again to strangers.

This is what it reminds me of. The father who beats his kid to death because he loves him so much. Does everything for the neighbors - just so the neighbors don't think ill of him. Neighbors say "Man that guys the best" -- every neighbor loves him as the kid dies.

Hoosier-

I understand your point...

But I'm sure many struggle to find logic, or credibility in a tax system that, by it's very complexity is setup to benefit those with the most means to manipulate it to their favor.

Actually, our tax code is prolly okay for the super low income...with deductions and freebies.

It's certainly great for the ultra rich who have the means to hire tax guys, lawyers, run businesses to effectively pay little to no taxes.

It's not so great for the lower middle class getting w-2's at their middle class jobs.

Some of those choose to have undocumented income to avoid what they see as a system that is unfair.

I understand your opinion. I just don't think someone who may object to the use of those taxes for paying for things those taxes should not be covering. We work hard for our income and hate to see it wasted.