JUST SOLD! North Ogden Condo Investment Package - Owner Financing

I recently sold four listings in North Ogden.

The Sunbrook Condos in North Ogden were built in 1998.  My client had purchased and been renting them out since their construction.  Due to changes in life circumstances, my client felt that it was time to liquidate them.  We listed these 2 Bed 2 Bath units for sale originally in July 2010 for $89,900.

After several summer listings passed, we put them on the market again in February of this year to give it another go.  My client had hoped that another investor would come along and snap up the bundle in one transaction.  Unfortunately, the investment financing climate for condos has been adverse.  When someone accounted for the multiple loans that were required, the transaction costs added up and reduced the return on investment.  The large down payments required by lenders also reduced the overall return on investment.  

So, to work around these issues, we put together an owner financed transaction for four condo units in one building.  The closing costs were greatly reduced.  Also, since the condos were owned free-and-clear, that allowed us to do a traditional note and deed of trust without worrying about "wrapping" an existing mortgage.  You can read more details on how owner financing (aka seller financing) works HERE.

In this case, the four units sold for a combined price of $328,000 with 14.6% down and an interest rate of 5%.  The buyer agreed to a balloon payment in 10 years.  Congrats to my client on converting their rental income into passive note income while avoiding capital gains taxes in the process.

If you or anyone you know is having trouble selling a property and is interested in learning more about how owner financing works, CONTACT ME and I can explain all the benefits and advantages and help determine if it is right for you.