Owner Financing can be a profitable enterprise that will help you to sell properties at a higher price, if done correctly. You need to do your homework and make sure that the person taking the owner financing can pay the loan back. And if they are asking you to be a bank you should have the right to delve into their personal finances.
Generally, I recommend to my clients that if they are going to do owner carrybacks that they do it for only a partial amount of the home, like 5% or 10% or 15% down. That way you still get most of your money up front and on the carryback portion, which you will secure with a mortgage (second in line), you can earn an additional 6%-9%, depending on the situation.
If you would like to find out more about this particular way of maximizing you sales proceeds, just give me a call or drop me an email. I’ld love to discuss how this can be beneficial to you and your buyer.