Dawn Has a Friendly Chat with Someone Who Has Never Heard of Seller Financing Before

Owner Financing & Note Investing Podcast with Dawn Rickabaugh

This was a fun chat with someone I met through another coaching group for entrprenuers. Erin and I can appreciate each others' sense of humor... and being able to laugh is high value! We got caught here in the beginning laughing over Charmander... anyone have kids that used to play Pokemon??

We discuss the challenges and opportunities surrounding homeownership in today's market, specifically focusing on owner financing as a powerful, yet often overlooked strategy. The conversation addresses the difficulties faced by younger generations in buying homes due to soaring prices and high-interest rates, and how traditional bank financing may no longer be the only or best option. Instead, owner financing—where the seller acts as the lender—can unlock trillions in home equity held mostly by baby boomers, creating a win-win scenario for both sellers and buyers.

We cover how government policies and monetary interventions during and after COVID-19 have distorted housing markets, driving up prices and making homeownership inaccessible for many. They emphasize that many boomers own homes free and clear, holding substantial equity that can be leveraged through owner financing to provide flexible, lower-interest loans to younger buyers. This method bypasses traditional bank loans, reduces transaction costs, and can offer better terms for both parties.

The discussion also dives into practical advice on how to approach owner financing deals, including how buyers can find sellers willing to finance, the importance of having at least a 10% down payment, and how owner financing documents work similarly to bank loans but without the middleman. The conversation highlights the tax advantages and income stability for sellers who carry the loan, and the benefit to buyers who can secure better interest rates and terms. The value of fostering personal relationships and trust between parties is stressed, along with the need for proper legal guidance.

They also touch on common misconceptions about owner financing, the risks of poorly structured notes, and the secondary market for selling these loans. The interview concludes with encouragement for people to explore owner financing as a strategic alternative to conventional home buying, especially amid current market volatility and economic uncertainty, offering hope and actionable insights for those feeling priced out or stuck.