Owner-financing on an owner-occupied loan?

[Eric Sanne]

Hey everyone,

This is my first post so I apologize in advanced if this comes off as a very dumb question. I am looking to purchase my second home, which will be a multi family unit, and an idea struck me. What if I do all of the steps to brrr but instead of rent long at the end, I offer owner-carry terms? I figure that I’ll be getting a monthly payment possibly more than what a rent payment would be, I’d get a larger down payment than a deposit would be, and God forbid they stop paying the ‘mortgage’ I can just take the house back. I couldn’t find anything about the legalities searching these forums, but a quick search on google gave a vague answer that, “most loan contracts have a due on sale clause” another option someone suggested was to do a lease to buy, but does anyone think I can offer owner financing? Would the buyer expect to be listed on the title once we agree to terms? How would the bank know Ive made this deal?

[Matt Crusinberry]

@Eric Sanne, It does appear that you're looking to do a lease to own or rent to own, which I personally am a huge fan of. I would suggest you search out "rent-to-own" or "lease-option" as a topic, or you can PM me and I would be glad to spell it all out for you, along with telling you how we do ours. Good luck!

You also may want to check out PODCAST #185 (https://www.youtube.com/watch?v=97dpS9jDBAE)