1. Owner Financing and lease options

2. What is owner financing
When a property from the current home owner and they carry back a mortgage for the property, or a portion there of.

3. What are the advantages to buyer?
Little or no qualifying
Negotiable terms
Credit not a factor
Flexibility to meet needs
Very low closing cost
Speed of transaction

4. What are the advantages to the seller
Speed of transaction
More attractive to buyers
Typically get more for property
Spread out tax burden
Secure investment w favorable return

5. Type of deals that fit this type financing
High equity properties
Free and clear properties
Story about Than lining up so many deals that we couldn’t keep up with
More money in your pocket – interest rate of 10-12% vs. 15 and points
Less work – no standard qualification process, less paperwork
Quick Funding - once relationship is established, funding in days if not hours (Chris G. example, call today, money in tomorrow)
Limited personal liability – no personal guarantees

6. What to watch out for
Carry back mortgages as a second mortgage.
***primary lender will not allow this

7. Required Documents - mortgage - personal promissory note
Hazard insurance policy
Title insurance policy

8. Lease Options

9. What is a lease OptionWhat
When have a lease on a property and at the same time have an option to buy the property.
****these should never be in t he SAME contract.

10. Advantages of lease option finanacing- for buyerbuyerdvantagesAA
Little cash out of pocket for buyer No exposure/ liability of actual ownership Speed of transaction Ease of controlling property Very low closing cost Can set up sandwich lease option for cash profit and monthly income stream Three profit opportunities

11. Advantages for seller
More available buyers Maintain all tax write off benefits Can get cash up front and monthly cash flow Non-refundable option fee Higher quality tenant buyer than traditional tenant. Can pass on many ‘owner ‘ responsibilities on to tenant buyer

12. Major opportunitesMaj
Can test a market w/o buying Can control a lot of property w little cash Can put off funding a property untill fully rehabbed Can creat great cash up front, back end and monthy

13. The End!