Seller Financing Question

[Alex Scattareggia]

This is a scenario being presented to me, I am the buyer in here:  what are the downsides of a contract like this?

-seller financed

-property has no mortgage/ completely paid for

-200k price, 50k down, 150k financed over 5 years @6%

-Buyer takes ownership of the condo and can begin to rent it upon down payment+ signing of promissory note

-Seller only transfers title when the buyer finishes paying off the balance.

Thanks!

[Sean Lunny]

Hey Alex, only downside I can see right now is the interest rate. You could get a better rate with a conventional mortgage and save some money over the long haul.

Also just make sure you have an attorney look over all the fine print and terms so you are protected.

Hope that helps!