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Updated 11 months ago on . Most recent reply

User Stats

221
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Eric Mcginn
  • Real Estate Investor
  • San Bernardino, CA
85
Votes |
221
Posts

Should I offer seller financing?

Eric Mcginn
  • Real Estate Investor
  • San Bernardino, CA
Posted

I bought 10 acres of vacant land in Joshua Tree CA at the county tax auction. 
I have it listed on the MLS for $39k with an agent. But I also have it listed on FB marketplace and often get inquiries about financing. This sort of property is expected to move slowly but there is demand.
I’m not opposed to the idea of seller financing but I’d want me $14k initial investment as a down payment. 

My question is whether or not I should consider this option to help speed up the sale. I’m not in too much of a hurry and come August I won’t have to pay capital gains taxes at least. But the plan is to sell it so I want to keep on working towards that. 
Are there any major risks involved? Would I keep the deed in my name until it’s paid off or would it transfer to the buyers name and only revert if non payment is an issue? How difficult is it to prove non payment to revert the property back to my name? Or am I thinking of this all wrong? 

thanks for any advice!!

Most Popular Reply

User Stats

45
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37
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JT Olmstead
  • Specialist
  • Mesa, AZ
37
Votes |
45
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JT Olmstead
  • Specialist
  • Mesa, AZ
Replied

We do this kind of deal all day long. With 14,000 down it should be a pretty nominal risk of default. 

Be sure you have the tools necessary to manage the loan properly. We place our monthly payment minimum at $350.

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