Seeking advice from owner finance investors in San Antonio

[Brandon Miller]

Newbie to the owner finance world and seeking some advice from experienced investors here. 

What are the typical terms you guys use, who are you using to draw them up, why would you rather owner finance as opposed to the other exit strategies, etc.? 

Thanks in advance

[Arissa Pedroza]

There is an owner finance TREC form that is used along with the residential 1-4 contract.  If you are licensed, consult your broker on how to fill this out.  There is not a standard but from my experience the terms are generally 10% down, 10% and either a 3-5 year balloon or they do the full 30 years.  The owner finance addendum will outline those terms and whether or not the buyer can refinance on their own.  This is good because investors like to put 10% down as opposed to typical commercial loans and use it as a rental property.  They can hold onto it or refinance at some point.  There is also a strategy where they have a vacant property and then they offer owner finance, which a lot of non investor people look for, season the loan for a few months and then sell the note.  It work well here in San Antonio