Advice on owner financing (interest rate, loan, financial, payment)

[nveztrgrl]

I am considering selling my rental unit with owner financing. I need advice as i've never done this before. Anything will help as this is something i have no experience in and want to protect myself as well as maximize my financial benefit. How best to set the loan, and how closing expenses get paid.. down payment, interest rates, clauses.. etc.. thanks!

[Off Topic]

My best advise is don't. There are a million pitfalls to owner financing and without experience, it's a recipe for disaster.

This is not something you are going to master with some tips on a message board. Not trying to be mean or discouraging, but you can really get burned on this.

[FalconheadWest]

Google the SAFE Act. If it's not your primary residence, you have many hoops to go through on owner financing now. Rules changed a few months ago.

[Off Topic]

Originally Posted by FalconheadWest

Google the SAFE Act. If it's not your primary residence, you have many hoops to go through on owner financing now. Rules changed a few months ago.

Excellent point. The SAFE Act has a bunch of exceptions (selling to immediate family, etc.) but it can be a real problem. And the question is, if you violate the SAFE Act, does that invalidate your mortgage? I don't know, but I sure would not want to be the test case!

So my original advice stands: Don't.