Is Owner-Financing A Smart Way To Buy A House?

[@dannymelendez1690]

If the deed & contract are done properly and LEGALLY, seller financing is the way to go!

[@takeastandorbeenslavedby-left]

Agreed, you may pay more but it is better than dealing with a corporation

[@darkgalaxy5548]

Except with family! Never do business with family!

[@anthonydooley3616]

I have personally bought three rental properties using owner financing, not from relatives, and I have sold two properties using owner financing. The main difference it that instead of the bank having a lien on the property, you have the seller as the lien holder. In today's higher interest rate environment, I expect that more people will consider this option.

[@DAMON409]

The reason the seller wants to do it is because he or she will collect the interest payments, instead of a bank, which means their profit will be much higher than the asking price.

[@magmasunburst9331]

Good post. Thank you

[@stevensmith5486]

As a buyer that seems better than paying it to a bank.

[@lkj0822g]

Yes, get an attorney to draft the contract because the protections work both ways. Prime example is the reason mortgage companies insist on escrow accounts where they pay the taxes and insurance. Hint: it is not done as a convenience to the buyer. Personally, I think the seller is assuming much more risk than the buyer in these types of transactions.

[@barnabusdoyle4930]

There are clauses in a lot of mortgages that if you choose to pay for the property taxes/homeowners insurance yourself and fail to do so, the bank covers those expenses and increases your interest rate as a penalty. I’ve seen people with 12.5% mortgages in those situations. It could benefit the lender to have that stipulation in the mortgage.

[@MillennialMike]

I've done to seller financing deals and they're the Holy Grail of Real Estate

[@brentboston35]

Why?

[@Dividendsmattertoo]

@@brentboston35 no closing costs lower interest rate especially now that interest rates are 7%

[@christianhernannnnn]

Please tutor me?? Like who manages the payments? Like the scrow account of whats owned and how much you paid and how much you have left? Whats that called and who takes care of that? Title company? 3rd party company? whats that called?

[@MillennialMike]

@@christianhernannnnn I literally was just sitting down to do a video for my channel. And your comment inspired me I'll talk a little bit about seller financing

[@christianhernannnnn]

@@MillennialMike please do so and how to sub to

[@AnoopMM]

This is very relevant to so many immigrant community families

[@DragonRider-007]

My Father-in-law co-signed a student loan for me to take a special accounting course. Wasn’t big, but it felt like I was scrambling to meet each monthly payment so I didn’t screw up his credit score. Happy to report I paid off the entire thing last month! My Christmas present to him, I guess, haha

[@llewellynlombard7428]

Wow!!! what sound advice for keeping away from future trouble? You can not go wrong if you follow that advice.

[@Theman2075]

I wouldn’t do it IMO. I’d rather deal with a bank than family when it comes to borrowing money.

[@nevinkuser9892]

if it makes sound financial sense then I would do it. For example, saving over $10,000 would make it a smart decision.

[@lisabaltzer4190]

@@nevinkuser9892Even with that, it isn’t worth it. NEVER mix family and money or business. I know from personal experience.

[@joshjahn4718]

Hows dinner tonight? "BETTER THAN I DESERVE!! 😂

[@craigslistrro709]

Me, sitting in my paid off house house i bought on an owner finance...

[@LipstickLady]

May I ask how you were able to find an owner willing to do this? Thanks!

[@hazelsgs4759]

Hey ,What steps did you take?

[@ellepatton]

Look up owner finance companies in your state. Interest rates are usually much higher tho.

[@scotmetcalf2745]

Dave I need help. My son recently found black mold on a home he’s been renting for about a year and never been late . Owner refuses to fix then he went and gave a person $1700.00 to move into a new home with intention of buying,they had code to door and then said he was scammed? Help with either or both problems would be helpful or rules to follow. I’ve listened to you but I’m just not that smart. Thanks for everything you do to help folks. Prayers to keep you going

[@patriciabradford1304]

If they want to take any shortcuts I would still steer clear. As Dave said do it all properly, no if ands or buts.

[@David-wo9un]

Dave and Rachel need to be together on calls more often; this was Great!

[@robertruschak7083]

👍🏿👍🏿

[@miketracy9256]

IT SOUNDS LIKE A GOOD DEAL AS LONG AS THE PRICE IS RIGHT.

[@davidtechmusic]

Whats the problem with land contract?

[@timlinator]

I have a rental with a long term ten year plus tenant who really loves the house. I want to sell it and would like to offer it to the tenant. The house doesn't have a mortgage and I am open to holding the note. Is this a good idea?

[@bluesky973]

Yes! Beats being a landlord!

[@marcusharley3064]

I SEE NO ONE MENTIONED THIS, BUT IF THE PROPERTY OWNER HAS OR GETS A LOAN ON SAID PROPERTY, HE NOW HAS A LIEN. IF HE DEFAULTS ON THAT LOAN, HE LOSES THE PROPERTY, AND SO DOES THE PERSON THAT BOUGHT IT FROM HIM OWNER FINANCE. I LOST A TRUCK AND LATER ALMOST LOST MY HOME. I SUED THE LENDER THAT GAVE HIM A LOAN ON THE PROPERTY HE HAD A OWNER FINANCE CONTRACT WITH ME. I ENDED UP BUYING THE PROPERTY FROM THE LENDER, AND THE OTHER INDIVIDUAL GOT IN A LOT OF CRIMINAL TROUBLE.

[@bluesky973]

Nope. Seller can’t borrow on a property he no longer owns.

[@marcusharley3064]

This guy made up all the terms and contracts with the owner finance buyers. The lender/bank, was unaware that he had owner financed the home to an individual. And the new owner finance buyer, did not know that he had a loan on the house. @@bluesky973

[@Not4Clout]

@@bluesky973I would agree that’s the reason the original owner got into legalities….as he should’ve because he was trying to be sneaky & get collateral from property that was tied to other individuals names.

[@jaimegranero9027]

That's why the house has to be paid off in order to do owner finance

[@bluesky973]

No, you can owner finance a home with a mortgage on it.

[@voyagetravel1840]

Im gettingcready to buy a house this way. Im debt free and have no financial hangups. Its eaither this or get a first time hone buyers loan which i definitely dont want

[@DeemTV1]

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

[@SoFresh13579]

Yes

[@nikelakitchen]

Where do you find seller financed homes?

[@coolhluke8089]

You said no land contracts? This is what my landlord sent to me when I told him I'm getting a lawyer to drop the paperwork Just to keep it simple I want it set at $800 month for house payment and $50 a month to go to the end of year taxes for 12 years then it goes in your name

[@coolhluke8089]

I could be wrong but it sounds like you were insinuating this was a bad idea can you explain why?

[@sheritacotten5293]

talk to a real estate wholesaler or investor who can best advise you those who have experience doing owner financing

[@mrsmith1339]

When they start talking land contract say thank you no.

[@bluesky973]

Land contracts are fine, as long as the buyer pays as promised.

[@emilywallace6281]

Could you in theory do buyer selling with a trust? My parents have a trust set up and are the current executors, it will pass to my brother and I when they pass away. Could you in theory borrow from the trust and use the trust like a bank and pay intrest to it?

[@informedmessages]

What E-40 say??? Nope!

[@birdmanbiscut]

Should we owner finance to sell our house?

[@philuent]

X possibly XX years later we land at an edge case where f&f dom says: family and ramsey says: do it

[@sheritacotten5293]

Owner financing certainly has tax benefits 🏡💰😊

[@juliozepeda2528]

What do you mean by no land contract?

[@SuperPak77]

He probably mean trailers park where you have to pay fee to land owner

[@XxDeathsEnemyxX]

He lives where I do, Winston Salem is garbage. Would move out before I buy a house there.

[@rnt45t1]

Why are land contracts bad?

[@pamwyatt9787]

Dave said something about the deed isn't in the borrower name. You could look up the difference on your state of each type loan

[@lesson1228]

Dave doesn't have experience in buying land through owner financing. It's the same process as buying a house. I've done it many times and I have sold land and houses through owner financing. I'm reading the comments, it's seems that no one knows much of anything.... only what Dave says.

[@LipstickLady]

@@lesson1228 how would one find someone willing to sell a house through owner financing? Thanks!

[@bluesky973]

Zillow search with keyword seller financing

[@UnaFamiliaMexicana93]

What does finance to own mean? Is it the same thing as this?

[@susan5661]

Wonder why the cousin is giving a good deal? Please still have a complete home inspection to assure no surprises

[@Chiefbadbruuuuuh]

You’d be amazed how many sellers want the property to go to someone they kinda know and are very interested in a simple transaction. And they stand to make money with interest, whereas the bank makes the interest otherwise. It’s usually a win win if the agreement is right and it’s done the legal way. We are going to see a lot more of this as interest rates go up.

[@jameshorton3692]

@@Chiefbadbruuuuuh yeah plus closing costs can be a killer.

[@ewlinitis]

Seems like Rachel has anxiety issues.

[@tjlift22]

DO IT

[@joeriveracomedy]

No! Someone is torching someone. Relatives only come out of left field if they are desparate and need to burn a mark.

[@ruxp10]

i would think rachel is a model if i didnt know she was daves daughter. Holy sheeeetttt

[@Creativepreneurlive]

Haven't watched the video but I'm almost positive dave is going to say "No" to this.. lol so predictable

[@Nick-gk6hj]

What's in it for the cousin?

[@sasukesuite1]

Interest payments?

[@cynthialeech2507]

@@sasukesuite1 regular stream of income from the buyer.

[@BridgeStamford]

Same as what’s in it for the bank!!

[@Wallstonecraft]

@@sasukesuite1 and the thing is, the lenders are not regulated as much as a conventional mortgage.

[@lukeharris2622]

✝️🙏

[@edwardsgrenada]

This man is so savage.. Ramsey i am concerned about your motive doing this show... always gives advices to keep people poor, always give a negative view of the situations.

[@jimmymcgill6778]

Why does Dave always thinks the worst of everyone?

[@alrbredwall]

Being n g cautious about borrowing money from family because it changes the dynamic of the relationship is not thinking the worst of people. That is a perfectly reasonable observation and holds true in most cases.

[@luketarplin]

Experience.

[@truthseeker6370]

You apparently didn't listen to the segment.

[@Swamprowdy]

Always? Worst? Everyone?

[@jml9550]

It is always better to state all conditions up front in a legal contract