What are the drawbacks od doing a owner financing on a property with 20% down and no credit check.
What are the worst things that can happen when i do a owner financing on any property?
The 20% down is great....and I would still insist on a credit report. Usually, someone who is investing 20% is less likely to default on their mortgage. But we know that sometimes bad things happen to good people. You may not be too interested in their past, but how are they handling their finances now? If they have not established bureau credit, utilize non-traditional forms of credit like cable bills, phone bills, rent payments, etc. The worse thing that could happen is that the buyer could default and then you would have to foreclose......and then sell the house again for another profit!!!!! I love real estate 8-)
Thanks melj. You scared me enough already. Any way the owner financing i am planning to do is on a land and not on a house.
Thanks guys for your replies.
The 20% down is great....and I would still insist on a credit report. Usually, someone who is investing 20% is less likely to default on their mortgage. But we know that sometimes bad things happen to good people. You may not be too interested in their past, but how are they handling their finances now? If they have not established bureau credit, utilize non-traditional forms of credit like cable bills, phone bills, rent payments, etc. The worse thing that could happen is that the buyer could default and then you would have to foreclose......and then sell the house again for another profit!!!!! I love real estate 8-)
Thanks melj. You scared me enough already. Any way the owner financing i am planning to do is on a land and not on a house.
Thanks guys for your replies.