Owner finance. Cons & Pros for both seller and buyer

[konying]

Wanted to hear from people with personal experience or people who have close friends with experience in buying and selling with owner finance.

What are the cons and pros? pitfalls to watch out for for both parties?

May be someone knows deals going bad? or whatever else.

Naturally being Thai Visa, the usual people will post rubbish about paying or selling for cash, but this is NOT about cash, but OWNER FINANCE.

Cheers

Edited February 23, 2015 by konying

[NeverSure]

I've mentioned before that I used to be a banker. What I learned was that people don't take personal loans nearly as seriously as they do loans from banks and other lending businesses.

The personal lender doesn't have the knowledge or the mechanisms in place to collect. I used to have people sit down at my desk for the sole purpose of asking how to collect. Well, if our late notices didn't work, we hired a collection agency or an auto repo company and that was that with a strict time table. We garnished wages and bank accounts, and even if we didn't want to our actions destroyed the person's credit rating.

Also, we had training and resources to vet someone before we made a loan. We were trained how to tell if someone would pay the loan back.

We very rarely had to take action against someone due to our lending guidelines, and due to the borrower's knowledge that we would take swift and meaningful action.

The chances of personal lending going bad are way too high to tempt me.

Cheers

[konying]

I've mentioned before that I used to be a banker. What I learned was that people don't take personal loans nearly as seriously as they do loans from banks and other lending businesses.

The personal lender doesn't have the knowledge or the mechanisms in place to collect. I used to have people sit down at my desk for the sole purpose of asking how to collect. Well, if our late notices didn't work, we hired a collection agency or an auto repo company and that was that with a strict time table. We garnished wages and bank accounts, and even if we didn't want to our actions destroyed the person's credit rating.

Also, we had training and resources to vet someone before we made a loan. We were trained how to tell if someone would pay the loan back.

We very rarely had to take action against someone due to our lending guidelines, and due to the borrower's knowledge that we would take swift and meaningful action.

The chances of personal lending going bad are way too high to tempt me.

Cheers

So no first hand experience, no knowledge on the subject.

Thanks for input

[NeverSure]

I forgot to mention what's called the three C's of lending. Credit, character, and capacity. If the person has a good credit rating, good character and reputation in the community, and the capacity to pay the debt, it's a good sign. Lacking any one of these it's a non-starter.

This is why lenders look at time. Time at the current address, time on the job, etc. Someone stable and still maintaining a good reputation probably meets the character part.

[Anthony5]

I've mentioned before that I used to be a banker. What I learned was that people don't take personal loans nearly as seriously as they do loans from banks and other lending businesses.

The personal lender doesn't have the knowledge or the mechanisms in place to collect. I used to have people sit down at my desk for the sole purpose of asking how to collect. Well, if our late notices didn't work, we hired a collection agency or an auto repo company and that was that with a strict time table. We garnished wages and bank accounts, and even if we didn't want to our actions destroyed the person's credit rating.

Also, we had training and resources to vet someone before we made a loan. We were trained how to tell if someone would pay the loan back.

We very rarely had to take action against someone due to our lending guidelines, and due to the borrower's knowledge that we would take swift and meaningful action.

The chances of personal lending going bad are way too high to tempt me.

Cheers

So no first hand experience, no knowledge on the subject.

Thanks for input

Maybe you can ask some loan sharks, plenty to choose from, as they have first hand knowledge.

[NeverSure]

I've mentioned before that I used to be a banker. What I learned was that people don't take personal loans nearly as seriously as they do loans from banks and other lending businesses.

The personal lender doesn't have the knowledge or the mechanisms in place to collect. I used to have people sit down at my desk for the sole purpose of asking how to collect. Well, if our late notices didn't work, we hired a collection agency or an auto repo company and that was that with a strict time table. We garnished wages and bank accounts, and even if we didn't want to our actions destroyed the person's credit rating.

Also, we had training and resources to vet someone before we made a loan. We were trained how to tell if someone would pay the loan back.

We very rarely had to take action against someone due to our lending guidelines, and due to the borrower's knowledge that we would take swift and meaningful action.

The chances of personal lending going bad are way too high to tempt me.

Cheers

So no first hand experience, no knowledge on the subject.

Thanks for input

I don't know if you're joking, but I do have personal experience. I've had to help a lot of people collect personal loans. I'd never do it.

Look at it this way. If the personal doesn't have the ability to borrow from a bank, why would you lend to him? ??

[Anthony5]

I've mentioned before that I used to be a banker. What I learned was that people don't take personal loans nearly as seriously as they do loans from banks and other lending businesses.

The personal lender doesn't have the knowledge or the mechanisms in place to collect. I used to have people sit down at my desk for the sole purpose of asking how to collect. Well, if our late notices didn't work, we hired a collection agency or an auto repo company and that was that with a strict time table. We garnished wages and bank accounts, and even if we didn't want to our actions destroyed the person's credit rating.

Also, we had training and resources to vet someone before we made a loan. We were trained how to tell if someone would pay the loan back.

We very rarely had to take action against someone due to our lending guidelines, and due to the borrower's knowledge that we would take swift and meaningful action.

The chances of personal lending going bad are way too high to tempt me.

Cheers

So no first hand experience, no knowledge on the subject.

Thanks for input

I don't know if you're joking, but I do have personal experience. I've had to help a lot of people collect personal loans. I'd never do it.

Look at it this way. If the personal doesn't have the ability to borrow from a bank, why would you lend to him? ??

Well you could ask yourself how the banks get so filthy rich. It isn't from paying interests on deposits, nor is it from their investments on the stock market, what could it be?

I'm sure you know the answer.

[konying]

I've mentioned before that I used to be a banker. What I learned was that people don't take personal loans nearly as seriously as they do loans from banks and other lending businesses.

The personal lender doesn't have the knowledge or the mechanisms in place to collect. I used to have people sit down at my desk for the sole purpose of asking how to collect. Well, if our late notices didn't work, we hired a collection agency or an auto repo company and that was that with a strict time table. We garnished wages and bank accounts, and even if we didn't want to our actions destroyed the person's credit rating.

Also, we had training and resources to vet someone before we made a loan. We were trained how to tell if someone would pay the loan back.

We very rarely had to take action against someone due to our lending guidelines, and due to the borrower's knowledge that we would take swift and meaningful action.

The chances of personal lending going bad are way too high to tempt me.

Cheers

So no first hand experience, no knowledge on the subject.

Thanks for input

I don't know if you're joking, but I do have personal experience. I've had to help a lot of people collect personal loans. I'd never do it.

Look at it this way. If the personal doesn't have the ability to borrow from a bank, why would you lend to him? ??

Let me try again

Wanted to hear from people with personal experience or people who have close friends with experience in buying and selling with owner finance

Your experience as a banker has absolutely nothing to do with this thread or the matter raised.

If you do not understand the meaning of it, welcome to ask, but no need to carry on what you experienced working for a bank or finance company, because once again it has absolutely nothing to do with OWNERS FINANCE as a seller or a buyer

[konying]

I've mentioned before that I used to be a banker. What I learned was that people don't take personal loans nearly as seriously as they do loans from banks and other lending businesses.

The personal lender doesn't have the knowledge or the mechanisms in place to collect. I used to have people sit down at my desk for the sole purpose of asking how to collect. Well, if our late notices didn't work, we hired a collection agency or an auto repo company and that was that with a strict time table. We garnished wages and bank accounts, and even if we didn't want to our actions destroyed the person's credit rating.

Also, we had training and resources to vet someone before we made a loan. We were trained how to tell if someone would pay the loan back.

We very rarely had to take action against someone due to our lending guidelines, and due to the borrower's knowledge that we would take swift and meaningful action.

The chances of personal lending going bad are way too high to tempt me.

Cheers

So no first hand experience, no knowledge on the subject.

Thanks for input

Maybe you can ask some loan sharks, plenty to choose from, as they have first hand knowledge.

loan sharking and owner finance has absolutely nothing to do with each other,

But thanks for going off topic with no relevance at all

[Rajhulmaheesh]

Dont do it with friends. Usually people who go into ownere finance deals are bound with bad history. Sell outright or tell em go suck eggs!

[konying]

Dont do it with friends. Usually people who go into ownere finance deals are bound with bad history. Sell outright or tell em go suck eggs!

Very useful, thank you