Seller Financing - I am the Seller

[Andrew Lax]

Currently own around 20 SFR in South Florida (Broward) with no debt.

All of them were purchased between 2009 and 2012 so have a ton of equity built up.    

Working on several ideas - but seriously considering Contract for Deed sales and just curious about current rates, points, etc etc.... I am also a Hard Money Lender but have no experience with Seller Financing. 

Have a meeting with my attorney next week and doing some research prior..

Thanks guys - long time lurker - enjoy reading the posts ...

[Steve Vaughan]

Quote from @Andrew Lax:

Quote from @Steve Vaughan:

Congrats on your free and clear portfolio! @Andrew Lax

For CFD installment sales I generally require 10% down and 6% interest for a well-vetted buyer. They can do interest only for a couple years, then have a balloon in 5 or 10 years.

 Thanks - 6% appears a bit low in todays market... Was thinking +200 bps over a 30 year mortgage, 3 points, interest only for 10 years... and of course a premium on price :-). 

 So you'll gouge them 3 ways. Nice. Better get a large DP too for when you take it back.

With a CFD, they don't even own it ya know. They'll have to buy it for real with a purchase loan.