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Thread: more info on Owner Financing

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    Question more info on Owner Financing

    Hi,

    I have some questions about owner financing, i know i need a good lawyer but i want to prepare myself first before asking questions to my lawyer.

    What is a common interest rate for owner financing?

    If somebody puts 30% down and wants to pay the rest over 5 years what happens with the title?

    Suppose the buyer demolishes my entire kitchen in the process, then stops paying, then what? Who pays for the damage?

    What should be written in an offer with owner financing?

    Thanks a bunch

    TC

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    i forgot 1 last question: offer should be made in Spanish?

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    and who pays yearly property taxes?

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    Quote Originally Posted by theconsul View Post
    i forgot 1 last question: offer should be made in Spanish?
    Even if it is another English speaker buying the ose it should be written in Spanish due to the fact that is the court system that would be enforcing said contract.

    Der Fish

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    You absolutely hold the title
    By offer you mean contract? Your attorney will do both spanish and english.

    For damages, your hopefully covered with your deposit. Make sure it's as big as possible. And they'll have equity, so not a huge chance of them damaging their own property.
    Normal in DR is about 8%. But you negotiate whatever makes the deal work.
    I would have the buyer pay taxes with some type of payment confirmation thru your attorney.
    Ariza Guzman Associates is great for RE imo.

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    Quote Originally Posted by theconsul View Post
    Hi,

    I have some questions about owner financing, i know i need a good lawyer but i want to prepare myself first before asking questions to my lawyer.

    What is a common interest rate for owner financing?

    If somebody puts 30% down and wants to pay the rest over 5 years what happens with the title?

    Suppose the buyer demolishes my entire kitchen in the process, then stops paying, then what? Who pays for the damage?

    What should be written in an offer with owner financing?

    Thanks a bunch

    TC
    I would only go the route of owner financing as a last resort. Will you still be living in the DR year round? If not it will be very difficult to monitor what is going on at the property. Just make sure in your contract that if the buyer stops making payments to you than he forfeits his down payment and the property reverts back to you. Who are you selling this to? Is the party local, from Europe or North America? Go on-line and do a background check if possible. Also have the buyer produce a credit history for you. Find out where his/her source of income is from. You need to find out as much info about the buyer as possible. This will give you some piece of mind. Also include in the contract that during the period that he is paying off the loan that he/she can't sublet the property to another party. You could also try including that no major structural changes can be made without your approval. Hire Guzman as your attorney. They will give you solid direction. Good luck.

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    Quote Originally Posted by ctrob View Post
    You absolutely hold the title
    By offer you mean contract? Your attorney will do both spanish and english.
    by offer i mean the very first offer that is made which we agree or do not agree upon

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    I moved this to the Legal Forum to get Sr. Guzman's opinionĀ 




    Super Moderator
    DR1.com

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    Quote Originally Posted by theconsul View Post
    by offer i mean the very first offer that is made which we agree or do not agree upon
    Then it could be any language. If you're both fluent in English that's fine. The attorney will draw up the contract in spanish and english and everybody gets to review it before signing to make sure nothing got missed.

    If you google "lease purchase agreements" you'll find lots of reading material to give some more insight.

    A Lease Purchase is kind of like a lease but it ends in a purchase. Any monies paid are non-refundable if the buyer backs out.

    A Lease Option is a lease that may or may not end up in a purchase. The lessee can back out with no repercussions.

    You'll want to offer it as a Lease/Purchase.

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