This article comes from http://www.streetdirectory.com/ by Amos Graham that talks about the buyer and sellers advantage on Owner carry real estate.
“For one, buying a home for sale under Owner Carry terms means the
current property owner finances part or all of the sale, usually through
a second mortgage, although sometimes the owner will carry the entire
This helps a lot of buyers that have great jobs and reserves buy homes. A lot of self employed people cannot get a mortgage and this type of financing is very attractive to them. The hassle in getting a loan is to much for some buyers.
“This arrangement is particularly beneficial for the seller because it
makes for a swifter settlement with little or no problems. Naturally,
every real estate seller will want the highest price and all cash. But
sellers also want to pay the least amount of capital gains as possible,
and this is where the owner carry or vendors finance becomes
advantageous for him/her.”
This is very true and in a lot of owner carry deals the down payment is $10,000 or more. That also secures that the buyer will be a good paying client. The other huge benefit is that the buyers are responsible for all the repairs. No property management is involved here.
“Another obvious advantage of owner carry terms for the seller is quick
settlement. Most buyers don’t readily qualify for home loans, which can
delay real estate sales. With vendor finance, both parties are spared
from the trouble of time-eaters like appraisal, underwriting, survey,
etc, and thus deals are closed quicker.”
Have an attorney that draws up all the paperwork for each deal, we have one in Ohio. Every state is different and correct paperwork is crucial to making a owner finance property legal.
“All in all, however which way you want to call it, whether owner carry
or vendor finance, the arrangement is becoming popular in real estate
sales nowadays. And it is empowering both seller and buyer.”
If you like income real estate or flipping real estate this process is much more profitable and a lot easier to do. Half the cost in rehab and there are no appraisers and loans that you have to deal with.
We have a lot of real estate in the Cleveland market that works for the owner carry formula. Homes have to have equity, Income and buyers and that is what we have in the Cleveland Market.