Owner Financing Popular 2022 Going Into 2023

[David Goswick]

Like my title suggests, I wanted to create a forum to see what everyone's opinion is on Owner Financing during 2022 and going into 2023. Do you see more owner financing options than you did during the low interest rates of 2020 & 2021? Are you seeing a buyers market emerging with sellers wanting to sell bad enough they will negotiate for owner financing instead of conventional financing? Will this trend continue going into 2023, or could new creative financing options start popping up as interest rates are still sitting at about 6.5-7.5% for 30 year loans?

[Scott Crowley]

I've definitely noticed more creative financing options from what I've seen since late summer last year especially. The seller finance option is the most prevalent of the creative strategies I've noticed, but certainly is not the only one.

I'm personally in the process of acquiring a new primary on a seller finance deal so I can convert my current residence into an investment property. 

Another option that I've seen out there that I know is an option for so many investors if they can find the right seller is sub to financing. With rates hovering in the range they are, there is a premium to be made on the sellers side if they are holding a low interest mortgage.

With all that being said, I think the buyers market is still strongest with creative financing in tow, and should continue to be as long as rates hover where they are as we go deeper into the year. However, I think things could shift very easily if rates start retracting in the slightest.