Investor · Ascutney, VT · Member since 2015 · 291 posts · 20 votes
the only way to owner finance a property is if they own it outright, right? so i would either need to pay them the difference of what they owe or they already own 100% of the propertyy
Real Estate Agent · San Diego, CA · Member since 2014 · 1k+ posts · 635 votes
10y
As the previous poster touched on, in order for it to be a true "owner financed" deal, the owner must have 100% equity OR your down payment must be sufficient to pay off the remaining mortgage and they agree to carry back the remaining balance.
If you reach an agreement to take over the remaining payments (normally on top of a sum/stipend being paid to the seller to buy out their accrued equity), you are entering in to the "subject to" arena.
With that said, the only way to find someone who will allow you to purchase their MFP subject to or with owner financing is by asking.
Before you do, though, be sure to shored up your understanding of whichever non-traditional financing strategy you will be pursuing. Being able to clearly explain the nuances of either method and knowing how to frame the "benefits" to the seller will go a long way.
Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes
10y
If they don't own it outright, it is subject to, which is kind of like owner financing or at least can be combined with it. More risk to both parties in that type of transaction than in a straight owner finance. We found one that was owned out right and were able to negotiate owner financing.
Real Estate Agent · San Diego, CA · Member since 2014 · 1k+ posts · 635 votes
10y
As the previous poster touched on, in order for it to be a true "owner financed" deal, the owner must have 100% equity OR your down payment must be sufficient to pay off the remaining mortgage and they agree to carry back the remaining balance.
If you reach an agreement to take over the remaining payments (normally on top of a sum/stipend being paid to the seller to buy out their accrued equity), you are entering in to the "subject to" arena.
With that said, the only way to find someone who will allow you to purchase their MFP subject to or with owner financing is by asking.
Before you do, though, be sure to shored up your understanding of whichever non-traditional financing strategy you will be pursuing. Being able to clearly explain the nuances of either method and knowing how to frame the "benefits" to the seller will go a long way.
@Kevin Foxany good books or articles on where to find this info that you recommend
I would honestly recommend utilizing the resources available to you through BP. Search the forums, blogs, guides, etc. Read as much as you can from those who have been, and still are, successful using these methods to acquire properties.
There aren't any books/articles in particular that come to mind, but there is a BP podcasts (Just looked on my phone and it is #2) that had a guest who shared some valuable insight on subject to deals.