http://www.REIClub.com - Selling Property With Owner Financing? Here’s Some Owner Finance Benefits and Risks for Real Estate Investors...
Owner Financing PROS
- Terms of deal are flexible and negotiable
- Higher sales price
- Tax breaks
- Monthly income
- Favorable Returns
- Shorter listing term
- Attract a larger number of interested buyers
- gives buyer time to repair credit to get conventional loan
- Eliminate repair costs
- Substantial savings in closing costs
- Sell the contract and cash out - note buying
Owner Finance CONS
- Have to be familiar with current loan terms
- Buyer may still default on loan at end of term
- Property may need repairs if buyer defaults or back-outs
- No full equity payment upfront
- Headaches of being a lender
- Verifications
- Possible foreclosure
- Evictions
