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Owner Financing

What is owner financing?

Many people have a lot of questions when it comes down to how to do owner financing. What is owner financing? How does owner financing work? After being in the real estate space for over 25 years, Mitch Stephen has found out how valuable it is to find other financing options beyond a standard mortgage and working through a real estate agent.

Many landlords and real estate owners are tired of rental properties and are looking for alternative ways to grow their income. They may have never heard of owner financing or they may not fully understand how owner finance works.

 What is owner financing?

Owner financing will:

  • Put more money into the investor’s pocket up front.
  • Minimize or even eliminate rehab budgets.
  • Virtually eliminate maintenance calls.
  • Reduce liability from taxes and insurance.
  • Stabilize your cash flow.
  • Make it easier to plan for the future.

How does owner finance work?

Owner financing is when the owner of a property sells the real estate and agrees to cover the payment over a period of time for the purchase price agreed to by the buyer of the property. As an example, an owner may agree to sell a house to a buyer, but instead of getting a mortgage loan financed through a bank, the seller may agree to take a $1,500 per month for 30 years.  This is a very oversimplified example, but there are many ways to make more money through owner financing than you would by just selling the house through traditional means.

This type of financing may not only be advantageous to the seller, but also to the buyer. Many people may not be able to obtain a traditional mortgage loan through a bank or other broker even though they have the income or downpayment to afford a home. To a buyer, the monthly payment may not be substantially different from a mortgage loan payment they may pay anyhow.  In addition, many owner finance contracts are flexible on the size of the downpayment and the terms of how many years the contract will last.

What is owner financing?

If you are curious about how to structure an owner finance contract or if you are looking for some tips on how to do owner financing, we have many resources for you below:

Solocast #9: So You Hired a Mentor Before and Were Disappointed

By Mitch Stephen / January 30, 2018 / Comments Off on Solocast #9: So You Hired a Mentor Before and Were Disappointed

So You Hired a Mentor Before and Were Disappointed Mitch Stephen has been a self-employed RE investor for 20+ years. His real estate investing career started at the age of 23 when he read “Nothing Down” by Robert Allen. REAL ESTATE INVESTOR: Mitch, together with his wife, Tommi, and his daughter, Shannon purchased their fair share…

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His First Year as a Full Time Real Estate Investor: Having a mentor

By Mitch Stephen / February 27, 2017 / Comments Off on His First Year as a Full Time Real Estate Investor: Having a mentor

Bill Young has started and ran small businesses since his 20’s (he’s 65 now), and has studied with many real estate investors during that time. Bill met Mitch in 2006 or so at the San Antonio Real Estate Investors Association when he was living there. Not long after that, the real estate bubble burst, and…

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Podcast: Owner Financing Student Success Stories

By Mitch Stephen / November 27, 2016 / Comments Off on Podcast: Owner Financing Student Success Stories

Mike Powell and Brandon Gaunce tell us their personal stories of learning about Owner Financing and how their success has grown to amazing levels.

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Real Estate Contracts

By Mitch Stephen / October 6, 2015 / Comments Off on Real Estate Contracts

First of all, I must state, I am NOT a licensed attorney. Any further comments are simply my own opinion. If you’re going to buy homes in a certain state, you should use the Real Estate Contracts created by that state. They are approved and excepted by the real estate community there and are more…

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Can Owner Financing Work With Condos?

By Mitch Stephen / October 5, 2015 / Comments Off on Can Owner Financing Work With Condos?

I’ve never done a condo conversion. Condos need an HOA, a board, managers, and meetings; everything I don’t want to be involved in. That being said, I feel like a person could make money converting the right apartment complex, but I don’t think you just “do a conversion” on the side. It needs to be…

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