Welcome to "Building Passive Income Through Real Estate". This week we are going to be talking about owner financing. I'll identify some of the benefits for both the seller and the buyer and give some ideas of some creative financing methods. Anyone interested in reading more about market conditions acroos the country should check out the following website. Realtors from across the country give their view of the market conditions in there areas on a weekly basis. You can check out their views at Realty Times.

Also in the news is proposed changes to legislation to allow homeowner to write of Mortgage Interest on their taxes. As an alternative, on my loans I have financed them as TAMI loans including the mortgage interest in the rate of the loan allowing me to have the write off now. A few banks like US Bank are actively marketing this type of program to get more loans. The legislation change is currently being lead by Reps. Paul D. Ryan (R-Wisconsin) and William J. Jefferson (D-Louisiana) in the House. The bill is H.R. 1336 and has already passed the Senate. By passage of the bill, they are estimating an additional 300,000 home sales per year based on a study by the Financial Services Roundtable. This is great news for investors leading to a larger market of homebuyers.

Contents:
1. Benefits of Owner Financing.
2. More online resources for the real estate investor.

Benefits of Owner Financing.
by Kevin Davis

While they may be more difficult to find, there are many benefits to owner financing for both the seller and the buyer. I currently have one property under owner financing in Northern Minnesota on the Canadian border. The seller is happy because he got full price and a great interest rate. I was happy because I had very little money down, the loan does not appear on my credit, and I didn't have to go through all of the headaches of financing while being self employed.

Advantages for Sellers

• Properties can be sold full value
• More attractive, creating a larger collection of potential buyers
• Less closing costs, which can be rolled into the contract with the buyer
• Fast Sale and Closing
• Deal can basically be worked out on the spot without waiting for buyer to qualify and funded
• Tax advantage for reducing capital gains tax instead of receiving lump sum

Advantages for Buyer

More online resources for the real estate investor.
by Kevin Davis

For those interested in finding motivated sellers in the Arizona market, I found the following website that allows you to search Public Notices through the Arizona Newspaper Association.

Arizona Public Notice Search

For those agressive investors looking for big multi-family projects, here is a link to the Fannie Mae Multi-Family site.

Fannie Mae Multi-Family

Those of you looking for a hard money lender, this is a resource I found that will lend up to 65% of the after renovation value to investors with scores above 620.

Hard Money Lender

Here is a broker for REO properties in the Detroit area. The properties here range from totally trashed to some decent properties. I am currently looking at the Detroit and Pittsburgh markets. Like Salt Lake, these are depressed markets that will eventually see an upswing. For these market I am mainly looking for low cost rentals that will provide a monthly cashflow and a low cost of acquisition.

Michigan REO

For a recorded conference call with Ron LeGrand, send me an email at

mailto:webmaster@firehorseinvestments.com

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