Owner Finance Your Property

Lots of people who want to own a home would do so if they could just qualify for the loan. But many people have some bad credit in their credit history – maybe because an ex-spouse filed for bankruptcy or because they themselves were not wise about budgeting when they were younger – and for this reason they have difficulty getting a loan. Others have great credit, but are self-employed, which can also make it harder when applying for a mortgage. And then there are the folks who just don’t have enough accumulated savings to make a big down payment. But if you own property and do the mortgage loan yourself, you can sell to these buyers, and make extra money on the interest payments.

Let’s say for instance that you have a house worth $100,000. You can offer to owner finance it, and instead of charging the going rates, you can charge an extra two or three percent. Buyers who have trouble getting loans will gladly pay an extra $50 or $100 per month in exchange for a chance at home ownership. And if buyers have trouble with the down payment, you can offer to sell to them in exchange for such things are repairs, if they have knowledge of carpentry or plumbing. Or you can rent to them and then apply the rent as a down payment, when they decide to buy. All the while, you charge higher interest, and have a steady stream of income for the length of the loan, even if it is a 15 or 30 year note.

.

Real Estate Investing