Say, is there ANY really good way to score a sale of my house with a 3 year seller financed loan and 10% down, that has ample security? Is there a company which will be the heavy if payments are not made? Or should I blow off this guy (I hate those "we buy ugly houses" (late night TV get rich quick no money down) people–they always ask "do you need your money NOW?" as if they can pay me current market rate in 5 years? Ha Ha Ha. But, if it was a loan, and I was making interest, and it was somehow safe, then are there ways to make that work?
I have an offer to buy a property I have he wants to pay it off in 3 years, he wants to pay 10% down, he wants me to use a title company of my choosing. Does this sound legitimate? Thanks
Wow great question. It's funny you are actually experiencing this private loan option as a seller and I am researching it as a buyer. First on grounds of etification, I am a busy mom and wife working 2 jobs and going to college to earn my BA. My part time position happens to be working for a small mortgage company. My boss is very real estate savvy and owns homes that he rents as well as purchases just to flip. There are positive and negative answers to your question. First of all what he is asking you to do is very legitimate and has been a practice of families and wealthy indiviuals for years. In other words wealthy people use these means of financing for commercial and business ventures and families use this to give a less fortunate family member a chance to own his or her own home. In todays market the seller finance option is usually used for indiviuals who have a hard time getting a conventional loan. It can also be used by invester types such as the guy you see on tv. An invester can do 1 of. 2 things. He either purchases the property via seller finance and then rents the property out for more then what he is paying and collects a profit for long term or short term. By short term he would flip the house or resell the house within a reasonable amount of time, preferrably before his first payment is due to the original seller.
In my case, I am seeking someone to owner finance me land in which I will later move my mulitisection manufactured home on and refinance to incorporate the two loans. Paying off the seller of the land in a short time span. For the me it is a plus because I do not have to try for a loan and for the seller he does not have own up to having receiving a lump sum of money for this tax season. In my research I found a company on line that acutally monitors such private loans called Circle Lending. They seem to charge a fee to manage the actual process of a private loan and can be used to monitor the payment end as well. The fees seem very reasonable. Also remember that you have every right to check this guys credit and make a decision based on that if you want to give him a chance and you can also charge him a much higher down payment to ensure he will live up to his part of the deal as time goes on. However it is done as long as you file the proper paperwork naming you as the lien holder on the property you will be able to recoup your money should the deal go bad.
June 14th, 2007 at 5:08 pm
as much as I enjoy a good sale/purchase question, I can't get the drift what you really want! the vernaculars are stated as such that I draw out of it the same shaky flim-flam that the others are trying to do to you, so what is it that you are really asking…bottom line with out the fan-fair and how can we help answer the Q you put b4 us?
References :
June 17th, 2007 at 4:40 pm
Wow great question. It's funny you are actually experiencing this private loan option as a seller and I am researching it as a buyer. First on grounds of etification, I am a busy mom and wife working 2 jobs and going to college to earn my BA. My part time position happens to be working for a small mortgage company. My boss is very real estate savvy and owns homes that he rents as well as purchases just to flip. There are positive and negative answers to your question. First of all what he is asking you to do is very legitimate and has been a practice of families and wealthy indiviuals for years. In other words wealthy people use these means of financing for commercial and business ventures and families use this to give a less fortunate family member a chance to own his or her own home. In todays market the seller finance option is usually used for indiviuals who have a hard time getting a conventional loan. It can also be used by invester types such as the guy you see on tv. An invester can do 1 of. 2 things. He either purchases the property via seller finance and then rents the property out for more then what he is paying and collects a profit for long term or short term. By short term he would flip the house or resell the house within a reasonable amount of time, preferrably before his first payment is due to the original seller.
In my case, I am seeking someone to owner finance me land in which I will later move my mulitisection manufactured home on and refinance to incorporate the two loans. Paying off the seller of the land in a short time span. For the me it is a plus because I do not have to try for a loan and for the seller he does not have own up to having receiving a lump sum of money for this tax season. In my research I found a company on line that acutally monitors such private loans called Circle Lending. They seem to charge a fee to manage the actual process of a private loan and can be used to monitor the payment end as well. The fees seem very reasonable. Also remember that you have every right to check this guys credit and make a decision based on that if you want to give him a chance and you can also charge him a much higher down payment to ensure he will live up to his part of the deal as time goes on. However it is done as long as you file the proper paperwork naming you as the lien holder on the property you will be able to recoup your money should the deal go bad.
References :
http://www.circlelending.com,www.homegain.com, http://www.finweb.com