Selling & Owner Financing Difference bw Appraisal & Asking Price

[Jason Pinkerton]

Hello BP World,

Bottom Line Up Front: Can I sell my home and owner-finance the down payment or rest of the asking if the appraisal won't allow the full asking price ($180k), but the buyer wants it and we needto get rid of it (to start investing elsewhere).

Backstory: I am selling my home in Fayetteville, NC (28306). The last contract we accepted (now cancelled) used a VA loan through USAA and the appraisal came back WAY low, $159k on a house we paid $175 for in 2013 and put $20k in upgrades to it. We were pretty annoyed with the way USAA sent an out-of-state appraiser who would ONLY do comps in that exact neighborhood, which is a rural-ish subdivision and definitely did not have any good comps. My REA offered better comps within 1.5 miles, same country and area but he wouldn't budge. Since it was a VA loan, which is a HUGE portion of the Fayetteville market, we're screwed for 6 months on that appraisal unless we challenge it (in the works). So, if a buyer can only (or only wants to) do VA, can I lend them the rest of the money to make the deal go through? I'm not sure this is really what I want to do, but I really need the capital to start investing in Tampa, FL. Any advice is appreciated.

Caveats: Yes, I know I did not make a good deal when I bought but I was not really an REI at the time, just buying a home for the family. Only after attempting to rent and seeing I would not make a profit in renting did I discover BP and therefore a much better way to invest. Also, if anyone here is interested in buying the house, PM me and I can give you more details. Would be willing to make a good deal if it worked out for everyone.

Jason Pinkerton