What Is The Best Method?
I'm entering into my first deal. A single-family house that was foreclosed on. After the repairs are completed, my exit strategy is to resell to a retail buyer as quickly as possible because I'm using a hard money lender.
My question is should I offer owner financing. I have found several private investors that will buy the note or should I look for people who qualify for conventional financing.
Yhagood
Attack it from both ends. Only thing is, if you go through a realtor, make sure you have clauses in there stating that if you find a buyer and do owner financing, they get nothing. However, if they find a buyer and you do owner financing, their compensation may or may not be the same. I sometimes just find a list broker and list the property in the MLS and advertise in the paper. The paper ad is for owner financing, the MLS ad is for a retail buyer.
Hey good luck on your deal I for the moment cannot add info to your situation....still acquiring the knowledge. I wanted to take this opportunity to sort of selfishly ask what private lender are you using and how did you come about that lender?
I would like to approach my first deal ala Ron LeGrand find the fixer upper and wholesale to a rehabber. Short Sales are become interesting to me as well.
I quess what I wanted to know is how to find hard money lenders who would fund a deal that has low LTV....Thanks!
Hi Yhagood ,
As Neb said, go at it from both angels. If you do find a buyer and want to offer them terms, then go ahead and refinance the loan out of the HML so that your cash flow will be higher.
If you have enough equity to be using a HML in the first place, you should be able to refi with little or no money out of yoru pocket!
Best of Success!
BAMZ
People that react on an Owner Finance home, usually are not in any position to negotiate on Price.
They depend on you to get them the house.
Learn how to structure the Note, and you'll do great.
The house can be marketed without a Realtor, as owner financing generates a lot of interest by itself.
Here's what you are looking at:
--- Full price
--- No 6% realtor fees
--- Usually sells quickly
It's a great tool to have available as an Investor.
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