How to Find Owner-Financed Business Properties

If you're looking for business properties but you're not sure you want to go through the hassle of using a bank and getting a traditional loan, you may want to consider owner finance business properties. You'll have more options that way, and you can address specifics like what type of down payment you have, the interest rate, and whether the payment terms can be made to be flexible. Often, an owner-financed property has more opportunity for flexibility than a property that's financed by the bank. It may not be reported on your credit, though, so you can't always improve your credit rating or build up your score by financing with an owner.

Where to Find Owner Finance Properties for Your Business

There are plenty of places where you can look for owner finance business properties. If you do a little bit of looking around, you'll see that you don't even need to go through a real estate professional to find one. Many of these properties are for sale by owner, and you can contact the seller directly. Web sites that offer collections of these kinds of properties and allow sellers to check them out for free are becoming more popular, too, so don't discount them. The important thing is not how you find the seller, but that you locate the right piece of property for your business or for investment purposes.

Whether you're going to use the property for your own business or whether you're going to buy it and be a property owner to someone else's business, financing through the owner makes it much easier to get the kind of property you're looking for. You can get terms that you feel comfortable with, and in a tight economy where things can change rapidly, that's a very important consideration.

What to Look for in an Owner Finance Property

If you're seriously considering owner finance business properties, take the time to choose the right one for you. Even if the financing that's being offered sounds like the best deal available, you may still want to look around a little bit and see if there are other options. Don't jump into the first deal that's offered to you, because you may end up with a huge case of buyers' remorse later on when you see another property that you know would have been a better choice for you.

Overall, you want size and location with owner finance business properties - just as you would with any business property. You also want to look for a good price, and you should check out comparable properties to see if the asking price is a good one or if it's overpriced for what you're getting. Beware of places that are severely under-priced, too, because it could indicate a serious problem that the owner may be trying to conceal from you in the form of a 'great deal.'