Owner Financing ?

Trucker T · Posted: May 27, 2009 1:30 pm Post subject: Owner Financing ?

Have any of you ever provided owner financing for the sale of your boat, and how did that work out for you? I specifically would love to see excerpts of the default language you used in your contract to protect yourself. Any experienced feedback is appreciated.

chavez · RIP MHL 04/25/1958 - 01/11/2006

Trucker T, I'd slap a GPS device on that boat as a contingency to owner-financing.

I "owner financed" once. I got burned bad, had to repo the car, but only got it back after years of searching and generally taking it up the a$$ on the deal.

Basically you should have the right to repossess the vehicle if they fail to pay within X amount of time. If you can find the vehicle.

Your only other recourse is to sue. Of course if you can't find the vehicle you likely can't find the debtor and you can't serve them. Then you get in to skip-tracing and all manner of fun stuff. YAY! Evil or Very Mad

ohsix · Posted: May 27, 2009 2:11 pm Post subject:

I can't help you with the language, but I'd be careful of financing someone that can't get a loan from a bank. If someone can't get a loan, the bank thinks they can't afford it, or they have a bad (or no) credit history. I have no credit history because I don't borrow money and I understand why no one would want to loan me money if I've never proven that I'm capable of paying money back.

The only way I'd owner finance anything is if the borrower had something stationary that I could put a 1st lien on.

JeffreyCH · Posted: May 27, 2009 2:20 pm Post subject:

Whoa, this sounds like a very bad idea. The only way I would even consider it is if the person is a close friend of many years, or a family member that wants to avoid bank fees and interest.

Okie Boarder · Ladies Man Joined: 03 Mar 2008 Posts: 10056 City: Edmond

I'm sure you could find something to cover yourself, but if it comes to that you will probably be losing money in the end.

What is the reason you are considering it, rather than having the person make arrangements with their bank or something?

Trucker T · Posted: May 28, 2009 7:18 am Post subject:

The buyer has been back and forth with his bank. He has an excellent credit score (mid 700's) and a great "career" job making good money, but he has a few strikes against him that make the loan a higher risk:

1) In his 30's (I guess that is considered young and risky???)
2) Never been loaned this substantial amount of money
3) Only been at current job for 6 months
4) The boat is old - 1978

Not to mention getting a big boat loan right now is nearly impossible.

Okie Boarder Actually, we would be making the interest that a bank would i.e. 7%, so we would stand to make more. The loan would be for two years based on a 10 year amatorization (sp?), with a balloon payment for the balance due on the 24th month. He would essentially be paying us interest checks for the next 24 months, and then the balance in two with not much hacked away at the original amount.

chavez Sorry about your luck man. This guy could literally cruise off to the Bahamas or something. I guess no contract language could harness that from happening.

JeffreyCH · Posted: May 28, 2009 7:23 am Post subject:

Just skimmed it but maybe this will help

http://www.cruisersforum.com/forums/f67/seller-financing-7392.html

Neognosis · Ladies Man Joined: 13 Jan 2003 Posts: 17617 City: Webster

USURY!

Broccoli B · Posted: May 28, 2009 7:31 am Post subject:

My parents did this with a house and made a substantial amount of money. Hard to run off with a house though.

Trucker T · Posted: May 28, 2009 7:54 am Post subject:

chavez · RIP MHL 04/25/1958 - 01/11/2006

Trucker T, ahh, so this is a BIG boat? Makes more sense then. I was thinking it was a wakeboat which is pretty easy to conceal.

cameraboy, Laughing

JeffreyCH · Posted: May 28, 2009 8:27 am Post subject:

Trucker T, Your welcome Very Happy