When your looking at selling an investment property or even your home owner financing may be a great option. There are a lot of buyers that need a place to call home and investors need more owner financing to purchase real estate.
The important part is to do it correctly through title and having an attorney that draws up all the paperwork needed to make sure all the i's are dotted and t's crossed.
I personally have buyers that want owner financed homes. They are investors and home buyers, the important part is to get qualified buyers and understand the timelines of the financing.
One of the major benefits is you do not have to have a totally updated home to get the best price. Owner financing can let the buyer update the home as they please. Investment Real Estate has the same advantages and the rehab may not have to be done before purchase. That can all be negotiated before you close the property. Imagine doing that with a bank or government loan?
Down payment plays a key role in getting the best candidate for purchasing a home on owner financing. There are great ways to get an idea on what is needed down on a property. I like 20% down on an owner finance and $5,000 down on an option to buy. If you have an very expensive home the cost would be greater on the option.
This strategy works well in nicer areas that sell under $200,000. These areas also have low vacancies in rentals and have a growing equity in their homes. There also needs to be good amenities in the area for people to shop, eat and have fun in.
Great example is Parma Ohio this city screams for people to live there. It's both affordable and is growing in equity. The area has all the amenities you need and close to Cleveland. There are of course other cities that works well also.
The cities that do not work have no or low amenities and heavy city codes that cost a lot. For example Cleveland Heights has a Point of Sale that can be expensive and is always there. If you have issues with anything they usually require you to fix it. The driveway may have a few cracks and they want all of it replaced. That really can cost a lot.
The timelines in these cities for inspections can take up to 4-6 weeks. All that time you cannot move anyone in the property.
Owner financing is a great way to get your property sold! Call me I'm Brett and I will get you an idea of what your property will bring call 216-703-5740 EXP Realty Ohio and 602-363-6551 EXP Realty Arizona
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Thank you