Owner financing presentation

[Austin S.]

I may have the option to purchase my old primary residence back for a rental (long story). I want to pitch the idea of owner-financing. Should I put numbers and everything down on paper as I'm explaining or just talk with the current owner first and see what their take is on it. Which way would give me a higher chance of educating them enough to consider the idea? What has worked for you guys in the past? Thanks BP!

[Bill Gulley]

I first mention it and ask if they know the benefits.

They get a higher return than likely any investment they might put the cash in.

They don't have a tax bite that year from the cash received, they pay as principal is received.

They know the property so it's the best collateral they could have.

If they need cash later on they can sell the note, all or just part of it.

It's a great monthly income.

After discussing those points, then look at the numbers. Good luck!