Owner Financing: Explained...

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What is Owner Financing? Whether you're dealing with Subject-To (Subject 2), Contract For Deed, Land Contract, Seller Financing, or even Seller Carried Back Mortgage, we're going to explain what is Owner Financing! Here we go, What is Owner Financing? Enjoy...

NOTE: Steve Hamilton is not an attorney. He is a licensed tax professional.

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When we got started in real estate investing, we didn't have the money or the credit to able to start investing in real estate. One day, we stumbled across the concept of seller financing and a light bulb went off in our head. For us, owner financing became the great equalizer when it came to going after even multi-family real estate deals. A lot of gurus make owner financing complicated or they make it sounds really hard. Let me break this down easily for you.

Let's say we're looking at a 10 unit apartment building. Traditionally, you would go to the bank and the underwriter would assess the risk of lending the money out to you to buy the property. Now, if you go through bank financing, there's a lot of hoops that you'll have to jump through. That includes appraisal, underwriting, turning in financial statements, and there's a time period of waiting for the loan docs until you can actually close. Sometimes, banks may require even an inspection done on the property.

With Owner Financing, the seller acts as the bank and luckily, there aren't a whole lot of hoops like the traditional route. The fastest we've closed on an owner financing in just 3 days! That's fast! And there are benefits for the sellers to finance your purchase

1. The seller gets to earn interest
2. Seller continues to receive a monthly payment with little to no risk.
3. Seller no longer has to worry about the maintenance
4. Seller no longer has to manage the property.

To summarize, the benefit of seller financing for you (the buyer) is:

1. There's no credit check for you.
2. It's fast close
3. No income verification from the seller
4. The terms are highly negotiable.
5. Highly scalable since you're not using your personal credit or bank financing

The Kwak Brothers are millennial real estate investors who have acquired over 82 Units of Rental Units and have raised over $20,000,000 of capital for their real estate deals. They are based out of the Chicago-land area and they are dedicated to helping hard-working people become financially free real estate investors! They specialize in owner financing acquisition and raising capital. They are the creator of the FORCE Strategy (Find the deal, Owner Finance It, Raise the Capital, Cashflow It, and Expand your Financial Freedom)

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#ownerfinancing #subjecto #sellerfinancing

---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.

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Комментарии

Owner financing will be a great tool to have once a economic shift occurs! 👍🏽

robelkaltiso

Does a seller have to be "free and clear" to be able to offer owner financing?

paolobonja

So why is it that sellers won’t do a credit check? I’d assume the sellers would want to see a stable job with an income statement or pay stub along with a credit report to reduce risk?

Aubatron

So, does the seller transfer the house to your name?

Jeanfranklynofficial

I love the concept of owner financing. Haven't used it on any of my RE deals yet but it's a great way to get low money down deals.

jamesallenrealestate

Is this a good method for purchasing a home to live in as well?

JustUsSystemInc

The reason I’m here is because I’m on chapter 8 to 75 units in 1 year this book 📖 got me rolling not only I’m learning a lot but I’m going for my real estate license as well. Thanks for your support kwak Brothers blessings to all of you family and friends.

geovannirodriquez

You said you were giving us a free sellers cheat sheet for free, I went to sign up for it, but it wont allow me to down load the document unless I sign up for some other course. That sucks

noradelatorre-realestate

6:03 "No money down" is unheard of in Seller Financing

kalyddessalines

With owner financing will the county recognize the buyer as the new property owner on property appraisal website etc. ?

DeemTV

When doing owner financing can you get Homestyle renovation loan, or just get a personal loan for renovations. Since doing a owner financing no inquiries involved

anthonyrose

As an investor can I purchase a property owner finance and then turn around and sell it on a land contract to a 3rd party buyer on a land contract or lease option
Which is the better option?

carloshoward

Omg i love your open sharing! Am I understanding this correct - around the 6:19 mark, where you talk about the property you bought with no money down (toured Tuesday, closed Friday), and did owner financing, they are taking your word for it that you will pay?

thenakitaharris

I finally got my first owner financed deal thanks to you guys. One quick question, can you deduct the payments/interest paid to the homeowner on your taxes?

Theo-B