Owner Financing / My Name?
Hi, I'm new here and I have an extremely basic question that will probably produce a chuckle from more than a few people.
If I find a property that is paid for and I think the owner is willing to finance, should I ask her to cosign, or is the entire point to avoid having your name on it entirely? I think she would do either, but I guess my question is, does most owner financing involve cosigning, or not?
By the way, my goal is to do many of these.......this isn't for my personal residence. (I don't know if that matters, but I'm saying that for the sake of giving more info)
Thanks. Glad to have found this place.
AnxiIous,
I don't think an owner wants to co sign. The point of owner financing is they carry the note that says you will pay them $xxx a month at a given interest rate, until the property is paid for in full.
Relax
The owner isn't co-signing (they would be responsible for payments if you didn't make them), the owner is acting as the bank, so you don't have to go through the more rigorous documentation process that a lender will go through.
HTH,
Robert
[addsig]