Many real estate investors who have a lot of experience in this line offer owner financing to people who cannot or will not go to banks and other financial institutions for loans due to various reasons, because they might have a bad credit history or have not had time to build a good credit score, self employment, etc. The deals are rarely for out right financing and there is a lot of negotiation involved between the borrower and lender. In any case, the private lender or investor will undertake due diligence no less thorough than what a bank would do, though the emphasis may be on different criteria for the one done by the former.

Wholesaling a deal with owner financing is extremely rare and this kind of investment needs exhibition of a lot of marketing and selling know how so that you can justify to the home owner that he or she benefits more from getting the payments towards the value of their property in instalments rather than in a lump sum. Owner financing is rather uncommon in many countries, where the traditional lenders, such as banks and insurance companies hold most of the loans that are used for purchasing property. Those who go in for owner financing have to be very experienced at it as the chances of the deal coming undone is quite high, even if everything is contracted for however the greater risks are offset by the chances of better rewards in the form of profits!