Making a purchase using Owner financing

[Chris Piazza]

Hey BP,

So I am looking at a property that I could house hack and grow my business in. I currently own my home and would keep it as a rental. I am a small business owner and had planned on purchasing a house next year, but need my 2018 tax return to get bank financing.

After my awesome realtor (my girlfriend) did some research on the owner of this property it seems he has a lot of different houses and commercial space. Clearly an investor. On the listing, owner financing is not an option.

I would be able to get a loan for this place first quarter of next year but don't want to miss out. I may be able to get private lending from a family member but would need to give pretty rough terms for that to happen and can not get an answer on that for a couple weeks most likely.

As for owner financing, I am a little confused on how to structure the deal. Should the interest rate be higher then a typical bank rate? Would it be amortized for the 12 months? Could it be an interest only financing until I can get the mortgage to cover ect.

I will continue to research. This just came up and it really is a perfect property for my business and family. So the owner financing idea just came from a BP podcast, I hadn't ever thought I would go that route.

Thank you everyone for the help! In the interest of time I figured asking here along with research was my best strategy.