Do you ever get 0% interest on owner financing?

[Brandon Turner]

I guess it woul n't hurt to ask the seller for this but was just wondering if ya'll ever got 0% financing on rental property? Say something like 25% down and )interest on a 10 year note.

[Jay Hinrichs]

I have sold many a property this way... a note paid off in 30 months at zero % has the same present value as a 15% interest note at 7 years.. something many sellers miss out on.. its how I sold most of my OREO..

We have been doing this on land deals since the early 80s.. did not invent it..

but we followed the auto industry.

and the other reason I did it is I had some Saudi clients that were prohibited from paying interest so I just backed into PV values and they were good with it.

We paid our imputed interest.. but you usually get a nice price for the asset.

and I can tell U the investors I sold these property to are happy campers as well. the houses did not cash flow and were maybe negative but now 3 to 7 years later they are free and clear and they paid NO interest which is money they cant get back.. I think its a win win if you know how to  Splain it to your seller.. and it does not hurt if you can use a financial calculator and do PV assumptions and such... same thing note investor use ..