Argument for owner financing

[Toby Russell]

I've done my first deal today as a matter of fact but now looking at what I have left in cash I want be able to do much else in order to have some on hand for any unforeseen repairs. I'm trying to find owner finance in order to get that lower down payment. Does anyone have any suggestions on how to argue for owner finance with someone who is afraid of it?

[Dennis Weber]

Well, I'm sure there are people on BP that have seller financed a lot more than me. My properties have tax deeds from tax liens and are somewhat distressed so my loans are only between 20-50k. I try to get my investment back plus what it costs to clear title for a down payment. But it's fun to be creative. For instance a guy bought a property from me for 20k. It isn't worth 20k. We're closing next week. He didn't really have much for a down payment he wants to live there while he's rehabbing. It's not habitable and needs money to replace the roof, install furnace, and other things before the cold air moves in. So fine. $1000 down. Once he does a few things he's tripled the value of the property. I use land contracts and insert a clause that until 25% is paid, I can evict, not foreclose.  It is very important to me for the borrower to have what?  Skin in the game. If I lose, they lose. With that said I would never give a loan to someone that I think will fail or default to get the property back. 

Again, I hope other more seasoned financiers give you some good tidbits.  Land contracts are forbidden in some states.