Posted by wpage on January 16, 2010 at 16:51:17:
In Reply to: Please Help ! Owner Financing.. posted by Ryan on January 15, 2010 at 16:54:11:
Ryan I would love to be able to find owner financed properties to buy especially when money is so hard to find these days. The seller probably knows that. However, you should analyze the deal as if you were paying cash for the property.What kind of tenants does he have? Are the rents similar to others in the area? Verify the expenses!
Often times the the owner is financing because he can get a higher price.This is not a bad thing if you can still make money. Make sure you know the true value of the property. Length of the mortgage term is very important.You don't want to put cash down, then lose the property because you can't refinance when the term is up. Look for a minimum of 5 years. Longer would be better.What is the interest rate on the loan?Does the revenue cover all expenses?How much is left over?
good luck wpage