source for Owner Financed Homes

[J Galt]

I'm in the market for an owner financed home. Is there a web site that lists owner financed homes?

I've tried a couple that suckered me. I need a site that isn't misrepresenting itself.

Thanks in advance!

 

[spec4]

Some pitfalls in that. Why, in this rate environment, would this be attractive?

 

[Cameramonkey]

Some pitfalls in that. Why, in this rate environment, would this be attractive?

Maybe y credit that prevents someone from qualifying for good bank rates? (or any at all)
(no offense to OP intended)

 

[JettaKnight]

It's such an obscure thing, there's bound to be scams.

Plus, why would any one person take on the headache and risk of being a mortgagee for a paltry 3%-5%?

 

[natdscott]

It's such an obscure thing, there's bound to be scams.

Plus, why would any one person take on the headache and risk of being a mortgagee for a paltry 3%-5%?

Because the “mortgagee”, in that case, may have:
—Significant RE Asset base, but doesn’t want to rent it.
—Wants better return than leaving their cash in a Bank, etc., but likes the security of RE investments relative to other options like the stock market.
—Doesn’t want to face a giant taxable capital gain in one tax year.

—And you don’t charge 5% interest on a contract...

 

[churchmouse]

Because the “mortgagee”, in that case, may have:
—Significant RE Asset base, but doesn’t want to rent it.
—Wants better return than leaving their cash in a Bank, etc., but likes the security of RE investments relative to other options like the stock market.
—Doesn’t want to face a giant taxable capital gain in one tax year.

—And you don’t charge 5% interest on a contract...

Bingo.

 

[J Galt]

Because the “mortgagee”, in that case, may have:
—Significant RE Asset base, but doesn’t want to rent it.
—Wants better return than leaving their cash in a Bank, etc., but likes the security of RE investments relative to other options like the stock market.
—Doesn’t want to face a giant taxable capital gain in one tax year.

—And you don’t charge 5% interest on a contract...

You sound like an experienced banker.

 

[snorko]

Because the “mortgagee”, in that case, may have:
—Significant RE Asset base, but doesn’t want to rent it.
—Wants better return than leaving their cash in a Bank, etc., but likes the security of RE investments relative to other options like the stock market.
—Doesn’t want to face a giant taxable capital gain in one tax year.

—And you don’t charge 5% interest on a contract...

All good points from the seller's perspective, but most folks above were more stymied by the buyer's motivation.

I bought my first house, duplex actually, on contract. It had been listed with a realtor but the seller wanted to defer the bulk of the proceeds for 5 years when his son would be entering college. Also was in 1993 so rates were higher.

I am not aware of any collective source for listings like that. Most sellers want out now. Contacting a broker may be one source.

 

[natdscott]

You sound like an experienced banker.

Some, yes, but I try to be one that listens to older types and thinks through what they took the time to say. Magnifies a guy’s experience without all the hard knocks...and hard knocks in this business are best avoided whenever possible.

 

[natdscott]

All good points from the seller's perspective, but most folks above were more stymied by the buyer's motivation.

Same as the seller, there are many good reasons for that thought process, and some bad ones.

That being said, the guy asked for info on where to find one, not why, or how.

I merely responded to Jetta.

The OP did not offer his reasons, and it is not my place (well, not here anyway) to ask that of him.

Honestly, most of the residential contract sales I’ve worked around were done due to a Buyer’s lack of liquidity for down payment for conventional financing, or a non-arm’s-length deal (family), and only more rarely because you had a Seller with specific financial motivations that went seeking a Buyer that checked those boxes.