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Originally Posted by greyeyes
Thanks Jazz, this is really helpful! One more question: why if you were already selling your house and Me (the buyer) wanted to finance through you would you tell me to find sand? would you not be getting the same amount of money at probably the same speed? I guess I'm not too sure how bank loans work.
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I don't necessarily want to be the financer if I'm selling the house. I want to get the cash so that I can buy the next house. I don't want the headache of chasing after someone that decides not to pay the mortgage, putting liens on property, garnishing wages, and other things that must be done when the buyer defaults for whatever reason.
So maybe you'll pay cash for the entire purchase, I don't know what market you are in but $100k+ cash transactions great idea. Any accountant will tell you that it's not a great idea to pay cash for any property as the tax breaks along with the pay with today's dollars in the future is a better deal if you invest that money into some other vehicle.
My experience from this is the family has carried loans for people in order to sell a property at an agreed upon price. The buyer could not qualify for the total amount of the price, so we carried about $50,000 that was to be paid over 5 years. It was a pain in the ass because they decided to not pay for it the first 3 years. I had to threaten legal action and then collect the money each and every month until the note was paid off.
I'm not trying to dissuade you from purchasing a property, I'm trying to understand why you are not going with traditional financing.
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