The Costly Risks of Owner Financing | The Den Episode 91

Are you unknowingly risking your deal with owner finance?In this episode of The Den, hosts Ben Lyons, Aspen Grown, Shannon Martinez, and Paul Barry dive into the top mistakes people make with owner financing. With hundreds of millions in sales and decades of real estate experience, the team breaks down real scenarios that could cost buyers and sellers big. Whether you're looking to finance creatively or just want to avoid the pitfalls, this episode is a masterclass in what not to do. Learn why title companies matter, how balloon payments should be structured, and what happens when taxes or insurance slip through the cracks.Key Takeaways:• Understand the difference between legal and equitable title• Why closing through a title company protects both parties• How federal tax liens can attach to your property• What happens if a balloon payment can’t be met• The dangers of a deficit closing and how to spot one• Why verifying financial terms is crucial before signing• Common misconceptions about rent-to-own vs owner finance• How escrow protects buyers and sellers alike• Strategies to protect against unpaid taxes and insurance• The pros and cons of long-term amortization vs balloon structuresBest Moments:00:01:00. “You don't want to make mistakes in real estate, especially with owner finance.”00:02:23. “If you do it right, it could be very advantageous for both sides.”00:04:07. “You might be having to negotiate again or working on getting your property back.”00:07:00. “I trusted information given to me by the seller without verifying it.”00:10:18. “Title companies won’t close a deficit closing nowadays.”00:13:00. “If it's not recorded, you have no legal right to that property.”00:15:40. “You're probably going to have to qualify for both loans at the same time.”00:20:15. “If you don't go through proper channels, you can be in big time trouble.”00:27:03. “There's actually a lot more ownership and responsibility in it.”Ad link: Visit our website to schedule a consultation.TikTokInstagramFacebookBuyer Video SeriesSeller Video SeriesSign up for our newsletter for valuable insights and updates.  This podcast has been brought to you by APodcastGeek