All Forum Posts by: Jason P.

This is a fixer upper. It has tenants but the property needs more work than I am willing to do at this time. Looking for a quick sale.
make me an offer.

https://www.zillow.com/homedetails/1110-4th-Ave-Sterling-IL-...

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Quote from @John Warren:

@Jason P. I am fascinated by this thread. You are looking to sell with seller financing, but you also want to do an exchange it looks like. This is the main issue I have seen when people look to structure seller financing deals. The seller still wants a big chuck of the capital out while the buyer can typically just get a loan for 5% down if it's a single family or duplex with an interest rate in today's world between 6.5 and 8%. There really isn't a compelling reason for the buyer to do seller financing, unless they are unqualified.

I am down for helping an “unqualified” person. I don’t need it for a new property. Was just an idea.
I was once an “unqualified” person due to buying at the top of a market and being told I could get an adjustment on the rates and by the time I qualified for it they ran out of funding for the adjustment. Prior to that I had never been late on a payment. But I forclosed and it screwed up my chance of buyin a home. Then I found someone to owner finance at 8.5% on a $330k property in the Bay Area. When I was able to buy again I refinanced for 3% and then we ended up selling the property for $800k. I’ve never missed a payment so I feel there are certain exceptions to being “unqualified”

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Quote from @David M.:

@Jason P.

What is the term of the loan?

Just to put it out there: why take the risk on somebody you don't know, and I am dubious if you know how to underwrite them? Why not just outright sell and reinvest your money --- in whatever asset?

I know for seller financing its commonly said that if the borrower defaults, you just get the house back.. But, that's after going through foreclosure.... And interestingly, in any other situation one would be wary of the condition of the property...

I guess back to your OP.. You could still list it as it should give you the breadth of all offers. The listing would say that seller financing is available.

Just make sure to get Note attorney involved in preparing your docs.

Good luck.

Thanks for this.
There is two reason for me wanting this. First is to help someone else out. My first property was owner financed and it helped me tremendously. So I’d like to do that too. Secondly with the down I’d use that to purchase another property.

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Quote from @Jonathan Klemm:

Hey @Jason P. - I would suggest posting here on biggerpocket in the classifeds section, on real estate Facebook groups, and find some local agents/wholesalers.

Make the downpayment and interest whatever you want based on your current needs. Maybe you do zero down but higher payments.

Is your property anywhere near Chicago? I could properly find some good connections for you if so.

No. It’s like an hour and a half from Chicago. Thanks.

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Quote from @Ko Kashiwagi:

Hi Jason,

9.5% interest is definitely on the higher end, but as @John Otradovec stated, it's up to you what you charge and who you are selling it to. The highest interest rate I've seen the past month on seller financing is 9% and I've seen as low as 5.5%. Usually down payments range from 0-30% down when targeting investor buyers.

At the end of the day, the point of seller financing is that sellers and buyers are able to form agreements that are generally not possible with traditional financing, so there's a lot of wiggle room to customize.

How does using an agent work? How do they get paid?

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Quote from @John Otradovec:

Quote from @Jason P.:

I have a duplex in Illinois that I'm thinking about selling with owner financing as it's a free and clear property.

Where would you post that? And would you do it on your own or get a broker involved?

Both units are rented out but upstairs said she is moving out soon.

Downstairs 2/1bth $600/m

Upstairs 2/1bth $500/m

Property needs work and am asking $120k

What down payment would you suggest? And at what interest?

Was thinking $25k @9.5%. But what do you all say?

Thanks!

I have a client who has 250 owner finance sfr in TX.. They do 10-20% down and 2% above current market rates.. If someone needs seller finance, they are willing to pay for it. Also, if they default you get it back and start again. They have sold some homes 2-3 times so thats the game. Dont be afraid to ask what you want, its your house!

Thanks. This is helpful! That’s what I’m looking to do. Does he just throw on Zillow or how does he find all the buyers? I can see a sfh being easier to do this than a duplex.

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I tried out homeserve because the sewer protection was $2.99/m and I used it once they sent out someone very quick I was surprised. This was last year. I don’t have the service anymore as my property manager has a snake now.

1 Vote

I have a duplex in Illinois that I'm thinking about selling with owner financing as it's a free and clear property.

Where would you post that? And would you do it on your own or get a broker involved?

Both units are rented out but upstairs said she is moving out soon.

Downstairs 2/1bth $600/m

Upstairs 2/1bth $500/m

Property needs work and am asking $120k

What down payment would you suggest? And at what interest?

Was thinking $25k @9.5%. But what do you all say?

Thanks!

2 Votes

Quote from @Jeremiah Dunakin:

Return the deposit. Wish person well. Times like this it’s time to sympathize and be a cool human. Tenant did no wrong, but has a lifetime of thoughts and emotions.

This is what I was thinking but I also wanna get it professionally cleaned the police said there was brain matter everywhere. And my property manager said he’s moving and ghosted me.

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So I have a duplex and a tenant had 4 friends over and one of the younger ones was playing with a gun and shot his friend in the head and killed him (all early 20’s) unfortunately. The tenant is moving out because of such a traumatic experience and I am wondering about the deposit. The place looks clean blood was cleaned off the walls, most was on the couch he threw out.
Do I return the deposit? I’m just wondering how to navigate renting it out again do you have to disclose a killing in the unit?

Thanks

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All Forum Posts by: Jason P.

Jason P. has started 6 posts and replied 42 times.

Post: Sterling, Illinois Duplex fixer upper for sale

Post: Multiple questions on Selling my property with owner financing

Post: Multiple questions on Selling my property with owner financing

Post: Multiple questions on Selling my property with owner financing

Post: Multiple questions on Selling my property with owner financing

Post: Multiple questions on Selling my property with owner financing

Post: Home warranty companies

Post: Multiple questions on Selling my property with owner financing

Post: Returning a deposit question after murder

Post: Returning a deposit question after murder