Oceanside Seller Carry Back Homes

With the rise in mortgage interest rates that has slowed down the real estate market more sellers are getting creative in how they sell their Properites.  Beyond the traditional ways of buying a home through a mortgage lender or simply paying all cash is the creative way of having the seller carry back a loan.  I learned this method many years ago in the 1990's with Carleton Sheet's book "How to buy your first home or investment property with no Down Payment which really was really useful information.  Carleton would always recommend using someone else's money when buying real estate and having the seller carry back a mortgage was one way of doing that.  The concept was basically the idea of talking with the owner of the property and he see if the owner owned the property free and clear and then see if they would carry back a mortgage based on the equity and offer you would be presenting to them.  This way you can negotiate the amount of the loan, the mortgage interest rates and even the amount of the monthly payment you would be paying to the seller without having to go through a bank to get a loan.  Then if this is an investment property it can be rented out to receive enough funds to pay for the monthly carrying costs with the owner.  It's a simple concept but can work if done correctly. 

There is currently one Oceanside home that is being advertised as the "Owner will carry first loan" in order to get the home sold.  The property is an ocean front property so there is a lot of value in its location that is currently priced at $5.5 million dollars.  The exact conditions of the loan are not communicated in the listing as these are typically negotiated when making an offer on the home.  We always recommend doing your due diligence on any property before making an offer.  This is especially true if you decide to turn it into an investment property and rent it out on a short or long term basis.  Talk with several real estate agents on rental rates and view comparable real estate sales to help you understand the current value of any property.  Being creative is a really smart way to buy a home if you do it correctly.