First time Owner finance offer

[Samuel Hall]

Hi folks,

I plan on making an offer on a property with 100% owner financing.

The property:

- Has sat on the MLS for just short of 365 Days

- has two stick built houses on a single lot.

- I believe is vacant

- I believe is owned free and clear.

- unsure if repairs are needed. I am seeing it this afternoon.

My planned offer:

• Will be 100% owner financing
• I do not know what percentage/dollar amount would be enticing while keeping my monthly payment in cash-flow territory.
• I do not know how to accurately calculate what my monthly payments would be.
• I do not know how I could service the loan if they accept my offer.
• I am considering including a “letter to the seller” providing explanation as to the benefits of owner financing. What is important to convey here?

I would appreciate your feedback on best practices or other success (failure) stories when it comes to owner financing.

[Philip Williams]

I think perhaps you need to slow down and take a breath, you don't know how you would service the loan if they accept your offer? What would you do if the furnace broke in the first month, or if you got a tenant in who couldn't pay the rent? I hope you have saved up some money for emergencies at the very least but it seems you aren't quite ready to make a purchase.