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Rainmaker
5,571,934
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

quick closing....no closing costs.... very short term loan ....but with a high rate.....

Jan 22, 2020 05:37 AM
Rainmaker
991,765
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

That's an "All depends" answer. Many factors to consider

Jan 22, 2020 07:18 AM
Rainmaker
6,614,529
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Some prospects may not qualify for conventional mortgage financing.

Jan 22, 2020 07:00 AM
Rainmaker
889,337
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The buyers lack of credit worthiness can be dismissed.

The BIG deposit or down-payment required is often the PROFIT intended.
The buyer really needs to understand if a transfer of ownership is actually the intent.

If the buyer has no other option, they need to realize THEY are on the menu.

Jan 22, 2020 06:46 AM
Rainmaker
543,479
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

it depends on the terms whether there is any advantage.

Jan 22, 2020 06:25 AM
Rainmaker
4,216,016
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Price, terms, speed to closing. Overlooking a buyer's less than stellar credit.

Jan 22, 2020 06:17 AM
Rainmaker
3,331,953
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Private money is good to buy quick, fix and sell. It should not be used to hold or keep a property. It is expensive and points for keeping a loan longer than 6 months or a year can wie out profit quickly

Jan 22, 2020 05:54 AM
Ambassador
1,822,131
Alan May
Jameson Sotheby's International Realty - Evanston, IL
A moving experience!

It can be a good option for a borrower whose credit isn't up to snuff.  You may pay a higher interest rate for that privilege.

Jan 22, 2020 05:39 AM
Ambassador
5,415,573
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Speed and flexibility.

Jan 22, 2020 08:51 AM
Ambassador
3,058,507
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

It depends on the situation and circumstances. There could be advantages and it could be it does not make sense - no advantages to the buyer.  

Jan 22, 2020 08:29 AM
Rainmaker
911,686
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

If the buyer cannot qualify for conventional financing, investor financing may be an option. The investor sets the criteria for the borrower to meet and it will likely be less credit driven and income driven and more equity driven. It will likely be more expensive.

Jan 22, 2020 08:09 AM
Rainmaker
885,161
Peter Mohylsky. Broker -BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

Not all that glitters is gold.  The big who, what, where and why need to be answered first.  Private investors remind me of the loan sharks of old.  I know that is not true in all cases  but investors do want a certain rate of return if they are taking a bigger risk.  

Jan 22, 2020 05:32 AM
Rainmaker
2,024,200
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Not much red tape . No appras

Jan 22, 2020 05:32 AM
Rainmaker
1,723,705
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

Might be more lenient but it wouldn't be adviseable. Should be a shorter turn around time. Very rare & if used there might be a premium on the rate.

Jan 22, 2020 05:02 AM
Rainmaker
2,080,387
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

 

Owner financing is seller private investing where it can be win win for both buyer, seller.

Jan 22, 2020 03:55 AM
Rainmaker
1,233,259
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

That's an "it depends" answer. Many factors to consider and you didn't create a specific scenario.

Jan 22, 2020 03:09 PM
Rainmaker
3,470,342
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Seth Rooker it depends on the borrower and the loan terms.

Jan 22, 2020 01:46 PM
Ambassador
2,607,269
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Bad credit ok for buyer.

Investor can carry the note.

If buyer balks, property reverts to investor.

Higher interest rate puts more money in investor pocket.

No need to come up with a lot of money up front (in some cases)

Jan 22, 2020 01:42 PM
Rainmaker
822,262
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Less credit work, maybe faster, but you need to focus on the risks as well.

Jan 22, 2020 11:39 AM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You have gone past the 10 mortgage Fannie Mae limit.

Jan 22, 2020 07:41 AM
Rainmaker
645,998
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Santa Clarita & Aliso Viejo

You might get a loan that you were unable to get with traditionally means.

Jan 24, 2020 03:55 PM
Ambassador
2,571,547
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   No underwriter.

Jan 22, 2020 06:33 PM