Owner Finance - How Low Can You Go?

[Dovid Staples]

Hello BP,

I know that setting up owner financing is not difficult nor should it cost much to set up and service. However, I am trying to acquire a parcel of land that is only $3,500. Since a perc test hasn't been done on the property I want the  owner to carry the note. His agent is claiming that at that price seller financing is cost prohibitive. I have been unable to find any info on how the  service fee and set up change for a lower note amount. 

Is this true? How low can you go before seller financing doesn't make sense?

[Thomas S.]

It is the responsibility of the buyer not the seller to cover the cost of setting it seller financing. Not really sure what costs the seller has that their agent is talking about.

I have paid upwards of $1200, as a buyer, to cover legal fees in setting up seller financing.