Owner Financing
Categories: Credit
You realllllly want to sell your home. It looks like something the Addams family wouldn't even want, but the land is worth...something. Probably. Once you sage the evil spirits.
The best offer comes from Manny Cartelmonger, who knows he has cash flow coming in but just doesn't have a downpayment. So you agree to owner financing.
That is, you sell Manny the home for $300,000. He gives you all the cash, and it literally is cash (unmarked twenties) from his trunk. You count it, using your toes as well. It's 5 grand. So you write Manny a loan for $295,000 at 10% interest, and he pays you off over time as if you were the bank.
That's it. You've financed his home, and you collect not only your sales price, but the interest as well. And you're just hoping Manny remains, um, free...to make that final payment.