If I own a House Free and Clear, Can I Sell With Seller Financing and Refuse Third Party Financing?

[Brooks Rembert]

Title says it all. If I'm interested in still receiving some cash flow, can I stipulate that I'll only sell on Seller Financing?  Even if it means I match the terms a buyer gets from a mortgage lender. 

[Bill Gulley]

@Wes Eaves  

@Josh 

@Josh C.

Residential leases.......tenants doing repairs will put you in violation of IRS Code, false returns and tax fraud. You are required to apply depreciation and capitalize repairs, if you didn't pay for the costs, and report the costs or don't report the costs, it's a false return, if you claim the costs of repairs or improvements, and didn't pay that cost, it's fraud!

Commercial tenants can do repairs and improvements, because such can be filed and accounted for in their business operations. 

Residential tenants who do repairs or improvements gain an equitable interest in the property, that can lead to foreclosure, not just a simple eviction. 

It's also predatory dealing, as a residential tenant was never granted the ownership rights and responsibilities of ownership requiring upkeep, the landlord is charging for rights of possession in rents, then on top of rents, requiring a tenant to pay their costs they are responsible for. Commercial is different as the business tenant can have lease capitalization and depreciation.

As to requiring that no other financing lien exists, that is another predatory violation matter in financing. Fair Housing in sales covers the buyer's right to select their financing.  

You can require a minimum down payment, you can't limit a buyer from putting more down. You can not limit sources of funds so long as those sources are legal.

Next, saying no seconds deprives the owner from the use of their property , the fruits of equity, the ability to pledge that equity earned and held for the owner's benefit, You're in violation again and that is another predatory move. It is clear that the lender doing that has more intentions of taking a property back than allowing another lender in a junior position to pay them off, like saying, I don't really want my money, I want the property back after default.

Saying no other liens won't be enforced; an owner who gets a judgment from some other matter such as a law suit or tax matter is not an event of default to foreclose. 

All of these issues comes from not understanding the basics of real estate, rights held, conveyed, interests obtained, rights of full use of a property by an owner, what tenant's rights are held, conveyed and their responsibilities as well as owner's rights and what ca not be conveyed. Very basic stuff. 

Investors can't think outside the box until they understand what's inside the box! Like a toy box with parts and train cars of different size trains, you can pull parts out and build your train set, but only certain tracks and cars will fit, you can't just use any part and make it work. :)