Posted by Chris in FL on January 24, 2010 at 22:01:11:
In Reply to: Please Help ! Owner Financing.. posted by Ryan on January 15, 2010 at 16:54:11:
Where to start... Yes, first analyze the deal to make sure it works - doesn't make sense to buy "just because you can". Does it cash flow for you to carry it as long as necessary? If the seller is motivated, and it is a good deal, what can you do to make it better? Hmmmm...
Ask for discounts if you make payments early? Try to have no balloon... Obviously longest term and lowest rate possible. Can you move the mortgage to other property, etc., if you desire (I forget the terminology)? State that, should seller decide to sell the mortgage, you get right of first refusal (means if he sells the note at a discount, you may be able to pick up another source of profit if you can cash him out, refinance, etc.). There are the ideas that come to mind right now... I am sure there are more ways to make the mortgage as favorable as possible... Keep in mind, how much you want to try to get in your favor has a lot to do with the seller... If he gets squirmish, don't scare him away over an advantage that doesn't mean much to you. If he 'just wants the property sold now', then you may be able to get all of this and more. Good luck, and welcome to the game!-Chris in FL