Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax Liens & Mortgage Notes
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 6 years ago on . Most recent reply

User Stats

130
Posts
17
Votes
Patrick Sears
  • Midlothian, VA
17
Votes |
130
Posts

Selling RE with owner carry but retaining an equity position?

Patrick Sears
  • Midlothian, VA
Posted
Hello, Curious if anyone has sold a home with owner-financing and designed the deal to keep a portion of the ownership of the house along with the new home owners? I'm talking about staying on the title with them, and keeping a partial equity position in order to keep the home more affordable to them via a lower purchase price or smaller down payment. I can definetly see this being of value of high price areas like Seattle or SF. I guess this would be a "residential partnership" I'm talking about consumer end-users, not investors. Overtly high-priced RE isn't a problem where I am, but I thought this might be a good way to share in the appreciation of the house while still selling (vs. renting) as a business model. No landlord headaches (main argument against buy-and-hold) and no giving up of future appreciation potential and a portion of tax benefits (main argument against selling on terms). I vacillate back and forth between buy & hold rentals vs flipping w/owner-finance; why not just do both...? I also figure that if I am on the title with the buyers, I might have a stronger hand in court if they decide to quit paying. Maybe? Yes? No? Any Dodd-Frank or other nanny-state nonsense legal land-mines to look out for here? Thanks!

Loading replies...