Seller Financing - Appraisals and Inspections

[Greg Larson]

Hi BP, quick question about seller financing. Is it common to have a property appraised and inspected following a seller - financed agreement? To be sure that the buyer is getting a fair deal, and a property that passes inspection. I'm just getting into REI and am intrigued by this type of financing for a beginner. Thanks!

[Dave Melton]

Why the interest in owner finance? We used to sell a lot fo properties on owner finance and we charged a premium interest rate for the privilege. Mostly because we were effectively lending borrowed money, and in come cases wrap around financing. The repeal of Glass/Steagall and the passage of Frank/Dodd has made this business model nearly extinct. I suspect you'd be better off working with a hard money lender, or finding fisbo's that might allow you to buy "subject to".