Owner Finance paid for rentals

[Darryl S.]

Hello BP. I am approaching retirement and am looking at selling my rental properties owner financed. My thoughts are that this would continue my great cash flow without the rental maintenance issues. Plus maybe delay a huge lump sum payment of capital gains taxes.

I have heard that owner finance rules are possibly different in each state? I am in the TN area. Any tips or information would be appreciated.  I had a attorney tell me recently that there was a law passed that prevents any owner finance without a mortgage license but from my internet research I believe the fella may not have been knowledgeable or at least had not kept up with current laws and exemptions. (hard to get good help nowadays)

[Ned Carey]

Most all the new laws regarding financing especially owner financing are regarding homeowner properties. They generally do not apply to rental/investment properties. 

If you are going to sell to investors not much of an issue. If you intend to sell to homeowners, you may not need a license but you will have to have someone that has one help you. 

This is a specialized area with several new laws so you  need an attorney that specializes in this area. A general Real estate attorney is probably not going to know enough. There have been a number of threads here on BP with some very knowledgeable people that may help. Search for Dodd Frank or @Dion DePaoli