February 17, 2021

Owner Financing vs. Lease Option, with Ron LeGrand

Episode 101:

You may know Ron LeGrand as the real estate guy. He’s been at it for 36 years and has bought and sold well over 3000 houses without using his money or credit, and he’s taught hundreds of thousands of people to do the same and still do to this very day. Ron still teaches classes all over America and does live deals with students everywhere he goes.

What you’ll learn about in this episode:

  • What owner financing is, and why it means that the seller has become the bank for the purposes of the deal
  • How “non-recourse debt” eliminates personal liability, and why Ron structures all his owner financed deals with non-recourse debt
  • What a “wrap-around mortgage”, a “deed of trust” and “land contract” are, and how which one applies depends on the state the property is located in
  • What “lease option” and “subject to” mean, and how a subject to deal means you aren’t guaranteeing debt
  • What situations an owner financing deal are good for, and which situations would work better under a lease option
  • Why it is important to understand state rules and laws before selling a house under owner financing to avoid potential headaches in the future
  • Ron shares different scenarios in which owner financing and lease option would be applicable and how the situation varies based on a number of factors
  • How your tax circumstances will differ based on whether your property is under owner financing or lease option

Additional resources:

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