Hi,
I am thinking of owner financing. Are their any cons to it. I have never offered financing to anyone. Is it a bleak idea?
A
Answers: The answer to most investing question is "it depends," and so it is with this.
The major "con," of course, is not getting remunerated. If the financing is something where you're holding a lien (i.e., a home, motor, etc.) then at least possible you have some indisputable recourse in the event of a non-attendance. The question to answer, after, is will enforcing the lien be "worth it" surrounded by your mind. Consider the steps to enforcement: court, attorneys, time, money, etc. Unfortunately, just saw, "you're in evasion, move out" rarely, if ever, works.
Also, depending on your state, in attendance may be tax consequences to owner financing. For example, surrounded by my state, there is no income toll per se, but if you hold a mortage for someone--that is, owner-finance the purchase of a home--you then own income import tax on that income. So, in this state, you effectively receive your own money but the affairs of state gets a cut.
So check the law in your state, but more importantly check your own gut vis-a-vis recourse surrounded by the event of a default. That's your through issue.
Good luck.
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I am thinking of owner financing. Are their any cons to it. I have never offered financing to anyone. Is it a bleak idea?
A
If I invest correctly is it possible to catch a return of $300,000?
Answers: The answer to most investing question is "it depends," and so it is with this.
The major "con," of course, is not getting remunerated. If the financing is something where you're holding a lien (i.e., a home, motor, etc.) then at least possible you have some indisputable recourse in the event of a non-attendance. The question to answer, after, is will enforcing the lien be "worth it" surrounded by your mind. Consider the steps to enforcement: court, attorneys, time, money, etc. Unfortunately, just saw, "you're in evasion, move out" rarely, if ever, works.
Also, depending on your state, in attendance may be tax consequences to owner financing. For example, surrounded by my state, there is no income toll per se, but if you hold a mortage for someone--that is, owner-finance the purchase of a home--you then own income import tax on that income. So, in this state, you effectively receive your own money but the affairs of state gets a cut.
So check the law in your state, but more importantly check your own gut vis-a-vis recourse surrounded by the event of a default. That's your through issue.
Good luck.
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