Show Notes:
- Introduction to owner financing in real estate
- Definition and basic concept
- Benefits for sellers: recurring cash flow, tax minimization, increased returns
- Why land is ideal for owner financing
- Less risk compared to properties with structures
- Difficulty in obtaining traditional financing for land purchases
- Higher interest rates and favorable terms for sellers
- Strategies for successful land investments
- Aim to recoup principle within 12 months
- Value-adding techniques: buying at a discount, subdividing parcels
- Example of subdividing a parcel into 6 pieces for profit
- Listing land for owner financing
- Offer as a secondary option to cash purchase
- Example of how to frame the listing
- Terms of owner financing arrangements
- Down payment requirements (15-25%)
- Interest rates and amortization periods
- Flexibility for larger loans
- Vetting potential buyers
- Using credit and background check services
- Criteria for accepting or declining applications
- Importance of loan documentation
- Choosing the right instrument (Deed of Trust, Mortgage, or Land Contract)
- State-specific considerations
- Consulting with a real estate attorney
- Selling land notes
- Criteria for maximizing resale value
- Platforms for selling notes
- Servicing the note
- Using loan servicing companies
- Importance of straightforward foreclosure laws
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Information
- Show
- FrequencyUpdated Weekly
- PublishedAugust 1, 2024 at 11:00 AM UTC
- Length11 min
- RatingClean