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Is anyone a member or know someone who is? Is this like costco for homes or more like Ronco :roll:

just curious, it seems like a good Idea from the infomercial but then again it's an infomercial.

Any thoughts? I can't immagine that they can get you stuff sooner than a retail store or home depot or get you better pricing, seems to good to be true. :wink:

Is anyone a member or know someone who is? Is this like costco for homes or more like Ronco :roll:

just curious, it seems like a good Idea from the infomercial but then again it's an infomercial.

Any thoughts? I can't immagine that they can get you stuff sooner than a retail store or home depot or get you better pricing, seems to good to be true. :wink:

Wheatie, I honestly thought that when you purchase a property and you carry a mortgage that you have to pay it off and I was told a while back by someone else on this forum that its not true.

I thought you had to hold the Title to do an owner finance deal.

John posted yesterday a terminology for this type of deal, [AITD (All Inclusive Trust Deed) transaction]. John explained a little about how it works in his previous post. Which leads me to believe theirs a possibility it is legal. I don't know if it is, I'm going to look into it with an attorney, I will post a follow up to let anyone interested whether it is or not.

I however appreciate all of the respnoces and shared wisdom.

I will defenitely be looking at all options before I dive in and I like Mikes' suggestion of a lease option, I just need to study up on it before I jump in.

Mike, snappy and John. John I think you got exactly what I'm trying to say or do. I didn't know their was a termanology for this type of real estate transaction. I'm green in this real estate game. :D

AITD (All Inclusive Trust Deed) transaction

The default part as you pointed out is the greatest risk, I guess I can get a foreclosure attorney to give me the worst case scinerio as far as cost goes.

I do realize that the home could be left in pieces, that's why I have taken to this board to get a feel from people who have experience with this subject.

Mike, I really like your lease option defenitely sound like a viable option. I don't know much about how it actually works so I guess I'm off to get more info in lease options. I must say it appears to be less risky.

Snappy I wasn't planning on paying of the 1st mortgage but I didn't know whether it was a legal option. From reading John's post I guess it is that is how I was calculating the 3% cash flow left over in my hypothetical.

I really appreciate all of you pointing me in the right direction, my next step is to find out whether this idea is a legal 1 and then incorporate somehow the great feed back you guys provided, if anyone else has an opinnion please feel free to share it with me, thanks again to all for taking the time to respond. :mrgreen:

Thanks John for responding. I agree with you especially on the legal counsel, I wouldn't attempt something like this without it and stack the language in my favor should they default.

I guess I'm on track with how its done, I will persue it carefully, If anybody else has a comment they would like to share on this subject please do so.

I'm looking for experiences with owner financing from people who currently do this or have done it, thanks again John. I really appreciate you taking the time to respond. :D

I'm sure someone here has done this. I have an Idea of how it works. I would like to hear from someone who currently has Owner financing on a property.

This is how I believe it works. I buy a property for 100,000. [EX]
Lets assume Its worth 150,000.

I have a mortgage for 100,000 lets say at 6% for 30 years.

I then sell it for 150,000 and finance it to someone with less than desirable credit, lol.

I charge them what a bank would for this credit problem say 9 % just for kicks.

I then make a 42,500 profit immediately and request a 5 % down{7,500} from the buyer. I would pay my mortgage and keep a 3 % from the mortgae after I pay the original mortgage leaving me cash flow monthly for any future problems with tenant along with the 5 % down I mentioned above, to cover legal fees should they default. If they default I would go through foreclosure process like a bank would.

I'm assuming that if they default I can resell the property again and start all over after the legal process is done. It seems all to easy.

Because I really don't know how exactly it works I'd like those of you with experience to blow up my Idea. Show me where I'm wrong and point me in the right direction please. My numbers are all obviously hypothetical if this is truly a good avenue for cash flow with risk obviously I'd like to know what can go wrong.

I have a great source for these types of properties and I'd like to take advantage of this if this is a good Idea.

Any info would be greatly appreciated. Thanks I

I'm sure someone here has done this. I have an Idea of how it works. I would like to hear from someone who currently has Owner financing on a property.

This is how I believe it works. I buy a property for 100,000. [EX]
Lets assume Its worth 150,000.

I have a mortgage for 100,000 lets say at 6% for 30 years.

I then sell it for 150,000 and finance it to someone with less than desirable credit, lol. :roll:

I charge them what a bank would for this credit problem say 9 % just for kicks.

I then make a 42,500 profit immediately and request a 5 % down{7,500} from the buyer. I would pay my mortgage and keep a 3 % from the mortgae after I pay the original mortgage leaving me cash flow monthly for any future problems with tenant along with the 5 % down I mentioned above, to cover legal fees should they default. If they default I would go through foreclosure process like a bank would.

I'm assuming that if they default I can resell the property again and start all over after the legal process is done. It seems all to easy. :wink:

Because I really don't know how exactly it works I'd like those of you with experience to blow up my Idea. Show me where I'm wrong and point me in the right direction please. My numbers are all obviously hypothetical if this is truly a good avenue for cash flow with risk obviously I'd like to know what can go wrong.

I have a great source for these types of properties and I'd like to take advantage of this if this is a good Idea.

Any info would be greatly appreciated. Thanks :D

Obviously these are NOT accurate numbers but it’s roughly the Idea. Please correct me if I'm wrong, I defer to you or anyone whom has actually done an owner financing deal.

I meant to say these are Not accurate numbers.

This property is in Miami. I'm thinking of taking 40,000 to 50,000 out of the property and leaving it in a CD for the possibility of my buyer not making payments and or not keeping the property up.

I figured that most people going with owner financing don't have good credit so I accounted for the possibility of having to foreclose.

I would definitely check into all the pros and cons before doing this, I'm just glad it is an option. Sounds like you have had personal experience with it, is it worth it?

From the outside looking in it appears to be a good idea. You can sell the property, make some short term money, {bought it for 157,000 and sell it for say 235,000 = 78,000 at sale} then collect money monthly to cover your 1st {1500 or so} and the buyers mortgage {roughly 2,000 per month. = 500 per month.}

Obviously these are accurate numbers but it’s roughly the Idea. Please correct me if I'm wrong, I defer to you or anyone whom has actually done an owner financing deal.

Thanks again.

Do you have to own the property free and clear to offer owner financing?

If you don't, can someone explain roughly how you go about owner financing if you currently have a mortgage on the property.

I ask becuase I have a home being offered at 157,000 and the value in todays market is 289,000. I would like to buy it and sell it for less than 289,000 say 235,000 making it the best priced comp in the area and maybe make some cash back over time thru interest.

can this be done, do I just need to see a real estate attorney?

thanks