Interest on Seller Carry or Seller Financing

[Scott R.]

For those of you who have sold properties with seller financing or a seller carry, what was the interest rate you charged? Anyone sell a fix and flip with a carry back?

[Bill Gulley]

Financing of properties that have had any construction activity in the past year have new financing issues under Dodd-Frank selling to an owner occupant. Commercial sales to an investor with recent construction can also fall into compliance issues with a residential property. Contractor financing was hammered under D-F, not allowed but under certain conditions or limitations, I didn't research the exceptions but noted the limitation or elimination. I'll believe an appraisal is required as well.

Also, check your state's usury laws with residential seller financing, you could be working off a margin over a prime rate. :)