Has owner financing been replaced by lease options, to be legal?

[Ralph E.]

I was speaking with a person who helps people create business entities the right way a couple months ago. I told him that I would like to be able to buy homes to sell with owner financing. He told me that there is no more owner financing, only lease options. Then it made me wonder how Mitch Stephen can do owner financing if one cannot sell a house with owner financing anymore.

Was this person wrong?

[Ralph E.]

Originally posted by @Christopher Phillips:

@Ralph E.

Yes. the person was wrong. a seller just offered owner financing on a rental a few months ago. He owned the property free and clear. Wanted $100K cash up front. Owner financing on the rest at 4.5% interest for 3 years, balloon payment at the end.

He wanted to spread out the capital gains impact and wasn't interested in 1031. Very common reason.

@Christopher Phillips

Thanks for the reply. I had a feeling he was wrong.