Owner Financing Question

[Jim Nettles]

Hi BP community! My wife and I are new REIs. Just bought our first rental and are excited about the possibility of adding more in the coming years. For our first rental we used conventional financing. However a few books I’ve read touched on the concept of owner financing but never fully explained the process from purchase to payoff or refinance. The basics we understand (I.e. negotiate price, a down payment 10-20%, loan % 3-5%, amortization term 20-30 years and payoff commitment 5-7 years). But what exactly are your options nearing the payoff commitment aside from the obvious and paying the balance owed? Do investors use equity in other properties to satisfy the balance? Do the try conventional financing and if so how does that work if you technically already purchased the property? What other options are available to satisfy the payoff?

Forgive me if my questions sound basic or are not worded appropriately. We are new but willing to learn.

Thanks in advance.