owner financing (again)

behaviorkeltonFebruary 15, 2010

I've put my house up for sale recently on Craigslist.

In one day, I have two people asking if I'd do owner financing.

I own the house outright and would rather just sell a house in the usual way. I'm in no rush.

However, given that anyone wanting owner financing will be suspect financially.... what's the way to roll with this?

The primary concern is to avoid taking a loss if they fail to pay.

I'm assuming that a large down payment is the most essential way to protect oneself.

Any links to good owner financing tips?

Unless owner-financing is profitable in some way, I'd rather not.

BK

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guvnah

I'm sure it works for some (maybe even most) people, but I wouldn't do it. Sure, you might get a big down payment but what if they start a big renovation & walk away with it unfinished or default & trash it before they leave? You could argue that you made money on it & you got it back to sell again - but the hassle factor of the potential down sides make me uninterested in doing it. Hey, why would I take a risk that a bank wouldn't?

We put a property on craigslist once & got nothing but requests for owner financing & the occasional "infomercial buy real estate with no money down" person offering more than we were asking but with lots of weird strings attached....

    Bookmark   February 15, 2010 at 11:55AM
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chrisk327

Generally the people who need owner financing are the one's who can't get conventonal loans..... they vary from a little risky to super risky.

Do you really want that problem?

    Bookmark   February 15, 2010 at 7:49PM
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mariend

Personally I would NOT do owner financing. Like somesaid, these are usually those with questionable credit. It would be almost like renting--if they stop paying--they could literally ruin the house before they just moved out. Don't be a "nice" person like I was and end up practially rebuilding the house before I did sell. NOT FUN!!!
I would talk to several agents/brokers, list for 3 months only, and set your terms. It might cost you a bit more, but at least you do not have to worry if the people really can afford it. That is your agent's job.
There is alot of good help here finding just the agent for you. Not a friend/relative, but a good professional person.

    Bookmark   February 16, 2010 at 4:40PM
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brickeyee

"I've put my house up for sale recently on Craigslist."

What type of buyers did you expect?

I have renovated houses and sold them and held paper.

With a well motivated buyer it can be profitable.

With the type of buyer you are liable to find on Craigslist I would be very leery.

    Bookmark   February 17, 2010 at 9:45AM
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