Owner Financing can be very Profitable, provided you take steps to keep yourself safe during the process. I want to show you four ways to both protect your Finances and make life a lot easier if you decide to Pinance your Property-owners.
- Finally, set a specific contract within the next time you will allow pre-payment. If you allow the face all the time, it makes it very difficult amortization (You can find more information on amortization, including how to build a table, at www.bankrate.com). So I suggest you allow pre-payment of one time per year. It's easiest if you restrict it to re-entry. This will make your calculations much easier.
- Ask for references and check them out. Be sure check out their work. And character are also important. So call a few professional and personal contacts. You want to make sure the buyer can be trusted.
- Make sure you do a background check on any potential buyers. With all the new laws on sexual harassment, you can easily find yourself in a bad situation if you sell to one and break the law in doing so. Background checks can also save you from potential fraud or con game all the way. And, if a buyer you are running a drug lab (such as methylamphetamine), the government can seize homes and causing all sorts of problems for you. It's best to avoid this situation - and everyone else - with a simple background check.
- In addition to background checks, you have to run a credit check. After all, you do not want to ask for mortgage payments on a person who has a history of not paying the bills. There is no guarantee they'll change their ways after they have started to pay you. You can get a credit check through one of the major credit organizations. These include Equifax, Experian, and TransUnion.
You can find lots of company background check on the Internet. Simply enter "Background Check" on the Search Engine and you should find plenty that can help you. Average cost is $ 25 to $ 50, depending on how much information you want. And these simple steps can definitely save more money down the road.
Once you have taken care to cover your bases, owner financing is a great way to sell your home faster and make more money on it. But you have to do your homework. If not, can be a big headache.
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