Need advice on Selling Land with owner financing

[Kenny Stanley]

I bought 20 acres on a very busy road in a growing area of Houston, I felt like it had great potential as a commercial property. It is very close to the Highway 99 that loops around Houston. The property needed some clearing and major clean up/demolition of some old buildings and junk from the previous owner. I've finished all of the clean up and just put the property on the market for $325,000.00. 

I like the idea of offering owner financing as an option because:

1) cash flow

2) It allows me to be more creative and flexible with a potential buyer.

I had a business owner contact me today about buying all or part of the land, and I mentioned owner financing was a possibility. (Did some research and his business is legit)

I'm thinking my terms for owner financing will depend on the offer:

For instance if its close to asking I'm thinking 10% down and 7-8% 15-20 years

Or if its lower but still accceptable I'm thinking 20-25% down and 7-8% over 15-20 years

I have $50k invested in the property and owe 175k.

Anybody got any advice? Good? Bad? Do you have another Idea?

[Fred Heller]

I would advise against it. Seller financing can be pretty risky for the seller in Texas. And you may need a mortgage originator license if you are selling a non-homestead property to a non-family member. Not sure if that applies to land. It's definitely something you should go over thoroughly with a real estate attorney before you even think about it.

Putting that aside, I think you have a great investment. The new development along the Grand Parkway through Tomball over to the Woodlands is incredible. Just when you think Houston can't spread out any further.....