If you have your unit for sale, own it free and clear and don't need the entire amount right now owner financing might be a great option for you! Owner financing can work in many ways and I always suggest having an attorney draw up the terms so everybody is protected.
One of the reasons why condos are a 'tougher sale' sale right now is the fact that it is difficult to get conventional financing with less than 30% down. Owner financing could expand the pool of buyers who CAN buy your unit.
Here is an example how owner financing could work:
The buyer makes a non refundable down payment. You can decide how much of a down payment you want. Let's say you agree on a price of 500K and you would get a 20% down payment = 100K down at closing of the property. You finance at 6% over 3 years with a balloon payment due at the end of 3 years based on a 30 year amortized loan. In those three years you would receive payments (The new owner would also have to pay association fees, assessments etc.)
You would receive $2398.20 each month in payments which would mostly go towards interest. At the end of three years you would have received a total of $86,335.20 in payments of which $70,671.58
would have been interest. The balloon payment you would receive is:
$384,336.38 which means that you would have received a total of $570,771 for your unit.
Something to consider ......
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