Owner Financing in Houston

[Charles Long]

Investment Info:

Single-family residence other investment in Houston.

Purchase price: $235,000

Cash invested: $5,000

Owner finance deal. Landlord retiring, selling a few properties. I represented both sides. Pocket listing. Was able to bring in a sale price 15% higher than market value. Buyers w/ good income but not great credit, unable to obtain "traditional" financing. Buyers understood they were paying a premium but with recent appreciation trends we all felt confident that they would recoup the equity within 18-24 months. Excellent terms $5,000 down 5% for 40 years.

How did you find this deal and how did you negotiate it?

Had worked with this seller on previous deals and had helped him lease his properties in the past. He asked me to help with the deal.

Lessons learned? Challenges?

Got a great education on the owner finance process. Worked with a real estate attorney to draft all the contracts/paperwork/deed, etc...

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked as the sole agent on this deal. Representing both buyer and seller. The Real Estate Attorney was knowledgeable as well. I will use his services again when the need arises.