Is Owner Financing Safe

Is Owner Financing Safe

Is Owner Financing Safe

Is Owner Financing Safe

Before investing in real estate, most people want to know ‘is owner financing safe?' Well, safety is relative. Everyone has a different comfort level, and every investment has its risks.

But there are ways you can make investments safer for yourself.

One of our favorite strategies to teach our students is how to invest with owner financing. But is owner financing safe? Read on to learn more.

Owner Financing as an Investment


Our company is all about empowering individuals and families to create the stability and wealth they’ve always dreamed of by teaching them about investing in real estate. When teaching strategies to our students, one of the questions we get most often is, “is owner financing safe?” This question comes up so frequently because owner financing is one of the best ways to invest in real estate without putting any money down.

But is owner financing safe?

The short answer is yes. While all real estate investments carry some risk, homeowner financing is one of the best ways to invest in properties. It’s so safe that many of our students have done it for themselves!

Check out the story from one of our students:


In March of 2018, our student’s landlord said that he was selling the home he was living in with his family. The landlord just wanted to cash out of the house, and our student went into desperation mode. His daughter was living with him, and he didn’t have the time or money to find a new place to live before the landlord sold.

But, thinking he had no other options, he started looking around for other properties. He started looking for a property that would work for him and his family—something large with a garage and an area for his daughter to run around.

He soon found a for-sale-by-owner home that was older and made from concrete blocks. He texted the owner and asked if they would be open to a rent-to-own option. The owner of the property said yes, and they met the next day to negotiate the price.

The homeowner was initially asking $229,000, and our student was able to get him down to $219,000 that day. At the time, rent for similar properties in the area was about $1,500 a month, but with some negotiation, our student was able to get the owner down to $1,150 a month, with an increase of $50 a month after each year of the lease term, ending with monthly payments around $1,250 a month.

Our student also gave the seller $1,500 down as a non-refundable option consideration with a lease term of three years. Additionally, he negotiated that the owner would take care of the maintenance of the home for the duration of the lease period, except the lawn.

At the end of the lease term, our student planned to purchase the home and sell it for at least a $10,000 profit, with his buyer making monthly payments to him, where he will make a $400 a month cash flow.

Our student’s story is just one of many success stories from using our owner finance strategy. What makes this student’s story particularly telling is that he used the strategy to purchase a personal home for him and his daughter when he believed there were no other options.

If you’re doubting whether or not owner financing is a safe investment option, let this student’s story be a guide. Without owner financing, he may not have found a home in time after his landlord sold the property he was living on, and while our student did put money down, he put down a small investment of $1,500 and was able to get a beautiful four-bedroom property for rent payments well under market value.

If you would like to hear more about our student’s story in his own words, be sure to check out his YouTube video.


Owner Financing for the Owner


We love owner financing. It’s a great way to make money from an investment without dealing with banks and the interest rates that go along with them. For an investor, owner financing can be an ideal way to invest without having a lot of cash on hand and for protecting yourself against market crashes.

But how do you convince an owner to sign an owner-financed contract?

We don’t want you convincing anyone. That’s not the type of game that we play. What you are doing is showing the property owner how this can solve their problems and be mutually beneficial.Make sure that they understand that they are not becoming a landlord, and they are not acting like a bank either.

For an owner, it’s important for them to understand that an owner-financed home is one way that they will get the full asking price of their home. On the open market, most people lowball on their offers, and real estate agents take 3-6% of the sale. But, by opting to go for owner financing, the owner is choosing the safer route for them. They are guaranteed the money agreed to in the contract, and as long as they’re okay not getting the money as one giant lump sum, then owner financing is probably the better choice for them.

After all, they will receive monthly payments, and their full asking price. Once they understand what owner financing means for them, they’re going to love the idea!

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