Galveston Texas

Posts Tagged ‘Carry’

Owner carry has been around for centuries. It is astonishing to review articles where people who supposedly are professionals, knowledgeable insiders, etc provide their keen insights on a topic they really do not know about.

This article is squashing 3 prevailing mths that are discussed. The three myths are: seller financed homes are higher in interest rate, owner carry homes are impossible to locate, and lastly, only desparate sellers choose to finance properties.

First Myth Squelched: While it may be true that owner financed homes may carry a higher interest than what a typical lender can offer for a loan, this does not have to be the case, and in my experiences, has not been the outcome. The terms of the loan specifically, the rate of interest, period of amortization, date of balloon payoff, interest payments only, or principal plus interest payments, etc are completely negotiable between the two parties. There are no rules to follow and both buyers and sellers can meet in the middle.

The 2nd Myth Trampled: Again, possibly, it may be true that an owner financed home is seemingly more difficult to find than a home with mass advertising, it is not impossible. I know the reason most people never buy a home using owner carry financing is because they have simply never asked. What we have is unknowingly expert opinions making ignorant claims to appear to be experts, yet they have probably never offered to buy owner financed. I will, however, be the first to tell you that most owner financed homes are not advertised (though many are). Most owner financed deals are hand crafted through buyers and sellers.

Third Myth Squelched: The belief that only sellers in dire straits, or difficult financial situations choose to owner finance their homes is not true. I believe there are hundreds of thousands of sellers near you who would be joyous to move their property and earn a consistent 5.5% monthly payment, while earning money from their principal by residential real estate. Untold numbers of 401K and IRA holders have observed their principal be cut in half. Their cashflow and yield streams are far from predicatble, and there are no safety nets. Just to have the peace of mind of that constantly flowing income stream is something to cherish for most people.