How To Find & Structure Owner Financing Deals

[Paris Johns]

I’m new to real estate investing and I’m looking to buy my first rental property using owner financing so I have to come out of pocket with little to no money.

What are some good ways to find these types of deals?

What type of seller(s) are ideal for this type of creative real estate investing strategy?

Also, my grandmother owns a condo in Cleveland, Ohio that she doesn’t use and I would like to pitch owner financing to her.

Here are some terms I had in mind. Please feel free to leave feedback and share your experience using this creative strategy.

Purchase Price: $45,000

Term: 120 Months

Balloon Payment: at The end of 120 months

Interest: 4.8%

Down Payment: Will pay for repairs in the form of a down payment. Repairs are estimated to be anywhere from $19K to $28K

I plan to use a private lender/rehab loan to fund the repairs.

Any advice will be helpful. Thank you in advance!

[Michael Ohara]

Finding owner financing deals are just a matter of asking the owner if they are willing to OF. Most willing owners don't need the cash right away, they own the property free and clear, and they like the idea of "loaning" their equity for a percentage.  Structuring an OF deal allows you to be creative, there's no hard and fast rules.  Great you can get experience from buying your grandma's condo.  You will most likely need to get a friend to loan you the rehab since the amount is so small and lenders want first position (as said above).  OF is awesome.  All the best. 🤙🏽