Owner Financ Guidance

[Kristofer Kohlstedt]

Owner Finance Guidance -

We recently put our property on the market for owner financing.

We started thinking of all the nuances we will be tackling during this process; our note is due on the balloon soon and we will be refinancing. Additionally, the loan on the property is a joint loan with another property.

For guidance, the post is to reach out and ask if we have missed something or if anyone could share an experience they had. A particular concern is the loan product for the refinance, for cash flow reasons.

refinance the joint property loan into individual loans - individual loans must be able to pay off the existing loan.

Insurance - what are strategies implemented to make sure insurance is covered for us and the occupant?

Since we are refinancing what are some loan service products that you all have seen (because we do not want to get a loan that exceeds the years we commit to the people purchasing the home).

Property numbers - purchased for $37,500 5/2016

Owner finance- $53,000

Refinance amount - unknown (we think it’ll appraise for $42-45,000).