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Seller financing of my investment property.
Old 08-15-2014, 12:36 PM   #1
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Seller financing of my investment property.

Has anyone here sold real estate and gone the seller financing
route? I'm trying to make this as simple and quick as possible.
I have a buyer already lined up. Just need to make sure I have
all the details I need straight.

43 and FIREd.
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Old 08-15-2014, 12:49 PM   #2
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Yup. a fixed interest rate makes you feel real smart when rates are low and kinda dumb when rates climb higher, but that monthly check is pretty nice. Consider a 30 due in 10 on commercial, which gives the buyer a relatively low fixed payment to plan on and protects the seller from rates going way high. I like our owner carry contracts more than the cash outs that require me to think of something productive to do with the money that >= the 6.5-7% a commercial contract pays.

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Old 08-15-2014, 03:27 PM   #3
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I haven't but a friend of mine sold his house that way. It was a bit of a special situation in that the seller knew the buyer well and the buyer had some past credit uses that prevented them from conventional bank financing but they could make a significant down payment. My seller friend is quite happy with his rate and the payments are coming in like clockwork.
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Old 08-15-2014, 03:55 PM   #4
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FIL used to do this all the time. He'd sell their home in S.W. FL. every few years. He held the paper, normally 5-10 year balloons.

Most of his buyers were new to the area couldn't get financing. This was back in the early 90s. Think he had an attorney draw up the initial paperwork. He never had any issues with buyers.

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Old 08-15-2014, 04:01 PM   #5
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If you have the ability to run a credit report, please do. Do not take anyone under 650. Also, make sure that they have a solid down payment, 20%.

Anything else is just plain risky.
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Old 08-21-2014, 12:12 PM   #6
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If I did it, I'd want a solid/detailed contract… and go the route similar to a bank, where the payment to me included property tax & insurance, so I could make sure they were kept paid.


I would not do it other than perhaps for family. If I sell an appreciating asset, I want to get that cash back into some appreciating asset, not have it locked into a 20 or 30 year dribble.

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