Understanding Owner Carry

[Eric Anderson]

Good morning all in BP...

What are the pros and cons of owner carry deals? 

Both for the seller and buyer?

I've seen a triplex listed that states owner may carry. My wife and I want to house hack an MFR to get start our buy and hold strategy going.

All insight is greatly appreciated

Sincerely

Eric and Wendy

[Christopher Blanco]

@Eric Anderson the seller gets an interest rate for their money. When I make a seller financing offer I make 3 different offers;

1. Cash offer - this is the lowest value
2. Monthly Interest only offer - This will be an interest only loan with a 5-7 yr balloon, normally 5-7% that i will pay monthly
3. Deferred Interest offer - This defers the interest with the balloon. This is normally an 8-10% offer. The monthly interest only payments are calculated then paid out at the end of the term.