SELLER Financing - I want to build a business around this

[100k]

So I'm currently working on a project that involves finding investors that are willing to invest in real estate in emerging markets and connecting them with local buyers that want to own a house & willing to pay 50% MORE than what the property is worth to the investor, but payment is made over 10 years.

Essentially the investors buys a property at market price, then sells it on for 50% premium, but the buyer has 10 years to pay off the loan - what's called Seller Financing in the industry.

The problem I''m solving is lowering the interest rate from 20% to around 5% and and giving buyers 10 years to pay off the loan instead of 2 years.

My issue is finding investors when I'm new, with no bank credit - and catering to emerging markets.

I've been trying to crack this nut for 6 months 😀 So far no luck.

My plan is to start running FB ads targeting US individuals and to buy leads from an aggregator/leads seller that specializes in real estate leads.

Any tips or advice ? Thank you kindly.

P.s what could I do to improve my offer for the investors so that the offer is a "no-brainer" and I can build a productocracy.

 

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[4gus]

So let's see if I understand this correctly, I just use names to make it easier.

• Jack own a house, current market price worth 100k
• Dan is investor, he bought the house from Jack for 100k cash
• Let's say Dan found Grace. She is local buyer, she want to buy the house from Dan for 150k (using 50% number from your example) with seller financing 5% for 10 years.

If above example are correct:

• How much down payment buyer (Grace) need to put?
• What's stopping Grace from using local real estate agent and find similar house like Jack's and finance with bank?
• Is the investor (Dan) happy with 5% return?

 

[100k]

So let's see if I understand this correctly, I just use names to make it easier.

• Jack own a house, current market price worth 100k
• Dan is investor, he bought the house from Jack for 100k cash
• Let's say Dan found Grace. She is local buyer, she want to buy the house from Dan for 150k (using 50% number from your example) with seller financing 5% for 10 years.

If above example are correct:

• How much down payment buyer (Grace) need to put?
• What's stopping Grace from using local real estate agent and find similar house like Jack's and finance with bank?
• Is the investor (Dan) happy with 5% return?

Thanks for your question.

Yes, the example above correct..... I'm the middle man platform that helps Grace to find financing with just 5% annual interest rate... in a market place where banks charge 20%.

Grace will need a 10% deposit of the amount she is going to pay Dan over the next 10 years... i.e 10% of $150k.

Grace can look for all the houses in the country, banks won't lend for anything less than 15%.

I am doing geo-graphical arbitrage - Dan is from the US, Jack's house is in an emerging country. So Dan is offering seller financing to make an impact/help others in a developing country that would struggle with a 20% annual interest mortgage that only lasts a few years.

Local house sellers in the country aren't offering seller financing. The concept doesn't even exist here.

I don't know if 5% is good enough for someone in the US/EU, but it certainly would not be for someone in the local market I'm in.... they'd want to charge as much as the banks are charging i.e 20%.

 

[The Sandman]

1st, you aren't really offering 5%, you're offering ~15%. Possibly more if there are additional fees and taxes calculated off the 50% premium. I personally find it repulsive when lenders advertise "LOW APR" but make it up with high up-front fees. It's a common predatory lending practice.

Aside from that, a couple big risk issues: what's the local legal process for foreclosing? Being able to get the property back when people stop paying is a big factor in seller financing. And what's the local inflation rate and risk of change? As the loan will be in the local currency this is effectively a currency trade as well, with associated risks.

 

[4gus]

From buyer's point of view:
$150k, with 10% down and 5% over 10 years. monthly payment for buyer: $1400
$100k, with 10% down and 20% over 10 years. monthly payment for buyer: $1700

$300k, with 10% down and 5% over 10 years. monthly payment for buyer: $2900
$200k, with 10% down and 20% over 10 years. monthly payment for buyer: $3500

Numbers don't look too bad. Monthly payment need to have significant difference so they want to join the program.

From investor's point of view:

• Investor need to come from country that happy with 5% + y/y appreciation - tax - currency trade - risk = x % like Sandman pointed out. This x % number may need to be "big enough" so the investor will be interested, otherwise they'll just find other investment with same return of x% inside their country.
• Need to have a team that can do the legwork/ due diligence: realtor, agency that can do credit/ background check, lawyer, accountant, etc.
• Want to have exit strategy

Another variation:

• Investor buy the house and just rent it out.
• The house can be used as vacation house located in exotic country, maybe this will make investor more interested to invest.
• The exact opposite (I had this thought a while ago): find investor from emerging country to buy house from developed country. Decent house price in major cities in Asia is higher than North America.

 

[Antifragile]

It comes down to this:

As a RE debt lender / investor in Canada, you can’t convince me with your structure.

It’s not geo-arbitrage. It’s looking for a greater fool.

A) Banks would lend at lower rates if inflation was lower there
B) I can get same deal here in Canada as pure debt. Never giving up my ownership.


Your math doesn’t work.

PS I’m in RE.

 

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[BizyDad]

What happens if the borrower doesn't pay? How does the investor get made whole? How are you going to mitigate currency exchange risk?

 

[Antifragile]

What happens if the borrower doesn't pay? How does the investor get made whole? How are you going to mitigate currency exchange risk?

And add the taxes investor has to pay on the immediate 50% gain! With no cash to show for it yet.

Honestly, it’s a backwards raw deal for any investor. No wonder you are struggling to find investors!

Edit: as I’m at the airport waiting … let me elaborate on why it’s a “backwards deal”.

Seller financing is typically popular when the real estate market is down or underperforming. If buyers can’t secure loans and there are fewer transactions.

Good example is now. After all the rate hikes, VTB - Vendor Take Back mortgages are back in vogue. I’ve done two deals with VTB this year. And it’s been a decade since the last before 2022…

VTB can also be seen as a “delayed close”.

It’s the way to incentivize the buyer.

Your model works in reverse. You are trying to get investors to buy & flip sell almost immediately.

Capital markets price in global risk into cost of capital. So a deal in Venezuela is different and more expansive than say NYC. A deal in Ukraine today with the war would mean a huge premium! Etc.

You are trying to bring investors like me to the table to invest in countries where I would demand a higher rate than local banks (& pay for the currency hedge!) but at local to me pricing. Honestly, that’s insanity. I struggle to imagine a situation where that could work. It’s backwards.

Start at the other end: instead of what the locals want (pay lower interest rate), ask: what do your investors want? Investors are YOUR customers.

Hope this helps and saves you pain.

 

[100k]

1st, you aren't really offering 5%, you're offering ~15%. Possibly more if there are additional fees and taxes calculated off the 50% premium. I personally find it repulsive when lenders advertise "LOW APR" but make it up with high up-front fees. It's a common predatory lending practice.

Aside from that, a couple big risk issues: what's the local legal process for foreclosing? Being able to get the property back when people stop paying is a big factor in seller financing. And what's the local inflation rate and risk of change? As the loan will be in the local currency this is effectively a currency trade as well, with associated risks.

Thank you for your comment.
I didn't know I was charging 15% or more, or that I was charging all these other hidden fees. I will make sure to let the boss know now that you've brought it to my attention.

Regarding foreclosure - you can go through the courts and have the property put up for auction, or you can get the rights to sell the property and kick out the person. Pretty straight forward, our company will cover the legal expenses with getting the person out.... unless that's a lie like the 5% rate.

The investor gets paid in hard currency i.e USD/GDP/EURO.

 

[100k]

From buyer's point of view:
$150k, with 10% down and 5% over 10 years. monthly payment for buyer: $1400
$100k, with 10% down and 20% over 10 years. monthly payment for buyer: $1700

$300k, with 10% down and 5% over 10 years. monthly payment for buyer: $2900
$200k, with 10% down and 20% over 10 years. monthly payment for buyer: $3500

Numbers don't look too bad. Monthly payment need to have significant difference so they want to join the program.

From investor's point of view:

• Investor need to come from country that happy with 5% + y/y appreciation - tax - currency trade - risk = x % like Sandman pointed out. This x % number may need to be "big enough" so the investor will be interested, otherwise they'll just find other investment with same return of x% inside their country.
• Need to have a team that can do the legwork/ due diligence: realtor, agency that can do credit/ background check, lawyer, accountant, etc.
• Want to have exit strategy

Another variation:

• Investor buy the house and just rent it out.
• The house can be used as vacation house located in exotic country, maybe this will make investor more interested to invest.
• The exact opposite (I had this thought a while ago): find investor from emerging country to buy house from developed country. Decent house price in major cities in Asia is higher than North America.

You got it wrong.

If a property is for sale for $100k, the investor buys it for that $100k, then I arrange to have it sold to a local person for $150k (the investor gets a 50% markup on his deal).... That works out to roughly 5% interest per year for the buyer..... in total.

The buyer pays $15k as down payment (10%).... then pays $150k - $15 = $135k paid over 10 years...

$135k / 120 = $1125 + property taxes + property insurance and maintenance.

There are no other "hidden" fees to try to scam the buyer.

 

[100k]

It comes down to this:

As a RE debt lender / investor in Canada, you can’t convince me with your structure.

It’s not geo-arbitrage. It’s looking for a greater fool.

A) Banks would lend at lower rates if inflation was lower there
B) I can get same deal here in Canada as pure debt. Never giving up my ownership.


Your math doesn’t work.

PS I’m in RE.

You're kinda assuming inflation is high, and that's the reason why the interest rates are high - what if I told you the inflation rate had on average been round 6% since the late 90s.

Thanks for your feedback though.

*INFLATION CONCERNS***

 

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[100k]

What happens if the borrower doesn't pay? How does the investor get made whole? How are you going to mitigate currency exchange risk?

The buyer needs to pay in USD/EURO/GDP, they need to deal with the exchange risk.

If they fail to pay, they lose the deposit and move out the house - they need to sign a contract agreeing to that.

Once they're out, I'll look for a new buyer and cover the money the investor is supposed to get during that time. No risk interest rate.

 

[100k]

And add the taxes investor has to pay on the immediate 50% gain! With no cash to show for it yet.

Honestly, it’s a backwards raw deal for any investor. No wonder you are struggling to find investors!

Edit: as I’m at the airport waiting … let me elaborate on why it’s a “backwards deal”.

Seller financing is typically popular when the real estate market is down or underperforming. If buyers can’t secure loans and there are fewer transactions.

Good example is now. After all the rate hikes, VTB - Vendor Take Back mortgages are back in vogue. I’ve done two deals with VTB this year. And it’s been a decade since the last before 2022…

VTB can also be seen as a “delayed close”.

It’s the way to incentivize the buyer.

Your model works in reverse. You are trying to get investors to buy & flip sell almost immediately.

Capital markets price in global risk into cost of capital. So a deal in Venezuela is different and more expansive than say NYC. A deal in Ukraine today with the war would mean a huge premium! Etc.

You are trying to bring investors like me to the table to invest in countries where I would demand a higher rate than local banks (& pay for the currency hedge!) but at local to me pricing. Honestly, that’s insanity. I struggle to imagine a situation where that could work. It’s backwards.

Start at the other end: instead of what the locals want (pay lower interest rate), ask: what do your investors want? Investors are YOUR customers.

Hope this helps and saves you pain.

Appreciate it.

Would there be tax complications even though payments are made over 10 years?

Technically, transfer of ownership i.e title deed won't be until 10 years down the road when the final payment is made.

I think I'll explore the idea a bit further before I quit and move on to something else.

Buyers LOVE the concept.... investors.... meh, not so much.

 

[BizyDad]

And add the taxes investor has to pay on the immediate 50% gain! With no cash to show for it yet.

Honestly, it’s a backwards raw deal for any investor. No wonder you are struggling to find investors!

It sounds like I'm tying up my money for 10 years in something that is not secured for a mere 5%. I guess plus an alleged 50k "upfront", expect it isn't upfront at all. That 50% is somewhat amortaized over the life of the loan. So the buyer and the lender have risk tied up in this deal.

Shoot, I've got money sitting liquid in the bank at 3%. Why would I lock it up for 10 years for an extra 2 or maybe 4%? Give it another couple months, and the American 10-year treasury will be close to 5%. At least there I'm "guaranteed" my principal.

You got it wrong.

If a property is for sale for $100k, the investor buys it for that $100k, then I arrange to have it sold to a local person for $150k (the investor gets a 50% markup on his deal).... That works out to roughly 5% interest per year for the buyer..... in total.

The buyer pays $15k as down payment (10%).... then pays $150k - $15 = $135k paid over 10 years...

$135k / 120 = $1125 + property taxes + property insurance and maintenance.

There are no other "hidden" fees to try to scam the buyer.

Oh wait, actually I'm not getting that 5% interest rate. Your calculation in here forgot to add that in to your 120 month amortization calculator. At 5% the payment would be $1,431.88 plus taxes, insurance and maintenance.

Bro, respectfully, if you are making this basic an error in explaining this, you should not be speaking with investors. Find another line of work.

The buyer needs to pay in USD/EURO/GDP, they need to deal with the exchange risk.

Plus this amortization doesn't explain how the exchange rate allegedly will impact the payment.

And lastly, and perhaps most damning in all of this...

It isn't clear where there is any money left for you or your company to make a living. There is no money in this for you AND you will handle ALL legal proceedings when the exchange rate goes against the buyer? Something is super fishy. This just reeks of shady dealings...

 

[Antifragile]

@BizyDad ...

I'll just be the a**hole that comes right out and says what's on all of our minds! The profile pic says it all for investors:



edit:

In fact, that's what's probably on the prospectus. At least he's honest about it from the start. 🙄

I've done every imaginable deal I can think of in RE. Raised capital, Joint Venture, Co-ownership, GP/LP, small and large investors. And I have to tell you Mr. @100k - you aren't ready. Love it, hate it, I don't give a shit. I stand behind my main comment - you've made a classic error in business, you don't know your client.

 

[BizyDad]

Hope this helps and saves you pain.

My thing is... You're on the forum for 11 years and this is where you are at?

I think I'll explore the idea a bit further before I quit and move on to something else.

Oh, I think I see the problem. Ok then. Good luck.

 

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[4gus]

You got it wrong.

If a property is for sale for $100k, the investor buys it for that $100k, then I arrange to have it sold to a local person for $150k (the investor gets a 50% markup on his deal).... That works out to roughly 5% interest per year for the buyer..... in total.

The buyer pays $15k as down payment (10%).... then pays $150k - $15 = $135k paid over 10 years...

$135k / 120 = $1125 + property taxes + property insurance and maintenance.

What I'm trying to say is from Buyer's point of view, they will compare joining your program ($1400/mo) vs financing from the bank ($1700/mo). That $1400 came from BizyDad below. I rounded the number.. for bank financing you'll get $1739 payment/ month

Oh wait, actually I'm not getting that 5% interest rate. Your calculation in here forgot to add that in to your 120 month amortization calculator. At 5% the payment would be $1,431.88 plus taxes, insurance and maintenance.

Anyways, I think you already got some great feedback here from investor's point of view

 

[biophase]

Oh wait, actually I'm not getting that 5% interest rate. Your calculation in here forgot to add that in to your 120 month amortization calculator. At 5% the payment would be $1,431.88 plus taxes, insurance and maintenance.

Bro, respectfully, if you are making this basic an error in explaining this, you should not be speaking with investors. Find another line of work.

I saw this on the calculation too. I actually think that he’s calculating the 5% based on the 50% markup of the sale price.

I think in his mind, when you sell the building immediately for 50% more than market value and then divide that balance by 120 months it comes out to a 5% return on the money. So you don’t get 50% appreciation and 5% return.

Either way, this isn’t a deal I would do if I had a bunch of money sitting around. There is just way too much risk for 5% return for 10 years.

We can go out and buy a CD right now or a bond yet that with none of the risk.

To the OP, there is a reason why interest rates are high in certain countries. Remember that return is all calculated based on risk so if there’s nobody loan lending money at 5% in the country, there is a reason why.

 

[100k]

It sounds like I'm tying up my money for 10 years in something that is not secured for a mere 5%. I guess plus an alleged 50k "upfront", expect it isn't upfront at all. That 50% is somewhat amortaized over the life of the loan. So the buyer and the lender have risk tied up in this deal.

Shoot, I've got money sitting liquid in the bank at 3%. Why would I lock it up for 10 years for an extra 2 or maybe 4%? Give it another couple months, and the American 10-year treasury will be close to 5%. At least there I'm "guaranteed" my principal.



Oh wait, actually I'm not getting that 5% interest rate. Your calculation in here forgot to add that in to your 120 month amortization calculator. At 5% the payment would be $1,431.88 plus taxes, insurance and maintenance.

Bro, respectfully, if you are making this basic an error in explaining this, you should not be speaking with investors. Find another line of work.



Plus this amortization doesn't explain how the exchange rate allegedly will impact the payment.

And lastly, and perhaps most damning in all of this...

It isn't clear where there is any money left for you or your company to make a living. There is no money in this for you AND you will handle ALL legal proceedings when the exchange rate goes against the buyer? Something is super fishy. This just reeks of shady dealings...

Thanks for your feedback.

90% of your average investor would probably not be interested in this.

I've been thinking to make this an IMPACT investment for impact investors that want to help people become homeowners. Those seeking higher yield, less return can invest in government bonds or 100s of other projects that will give them a better return.

The main people I want to help solve a problem for are the homebuyers that are stuck with 20% interest rate....investors that want high yield, this isn't really for them.

But I appreciate your concerns and feedback.

 

[100k]

@BizyDad ...

I'll just be the a**hole that comes right out and says what's on all of our minds! The profile pic says it all for investors:

View attachment 47756

edit:

In fact, that's what's probably on the prospectus. At least he's honest about it from the start. 🙄

I've done every imaginable deal I can think of in RE. Raised capital, Joint Venture, Co-ownership, GP/LP, small and large investors. And I have to tell you Mr. @100k - you aren't ready. Love it, hate it, I don't give a shit. I stand behind my main comment - you've made a classic error in business, you don't know your client.

Hahah, I love it.

Thanks for your comments and feedback, even if its negative or from a place of misunderstanding or presumptions.

I'll let the marketmind/marketplace let me know in the end what needs to (can) be adjusted and what can't, then I'll make up my mind.

 

[100k]

My thing is... You're on the forum for 11 years and this is where you are at?



Oh, I think I see the problem. Ok then. Good luck.

We all move at our own pace. You got there in 2 years, someone else might need 10+ plus years.
Some get to a billion in 5 years, others don't get there until 25 years.

Thanks for the low key dis though, appreciate it.

 

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[100k]

I saw this on the calculation too. I actually think that he’s calculating the 5% based on the 50% markup of the sale price.

I think in his mind, when you sell the building immediately for 50% more than market value and then divide that balance by 120 months it comes out to a 5% return on the money. So you don’t get 50% appreciation and 5% return.

Either way, this isn’t a deal I would do if I had a bunch of money sitting around. There is just way too much risk for 5% return for 10 years.

We can go out and buy a CD right now or a bond yet that with none of the risk.

To the OP, there is a reason why interest rates are high in certain countries. Remember that return is all calculated based on risk so if there’s nobody loan lending money at 5% in the country, there is a reason why.

You've been the closest one to understanding the 50% return.

I guess its quite confusing, I'll need to look into that.

Thanks for the feedback, if you don't mind taking a closer look at this whole situation, send me a DM and I can give you my website to understand some of the points that has everyone confused.

*CONFUSING RETURN***

 

[biophase]

You've been the closest one to understanding the 50% return.

I guess its quite confusing, I'll need to look into that.

Thanks for the feedback, if you don't mind taking a closer look at this whole situation, send me a DM and I can give you my website to understand some of the points that has everyone confused.

*CONFUSING RETURN***

It’s confusing because you can’t present a return on investment that way. You tell me that I’m going to buy a house for $100k and sell it to someone for $150k and that’s what I expect.

Instead you should say you are selling the house to this person for $150k seller financed with 10% down and at 0% interest for 10 years.

Or you are selling them the house for $100k seller financed with 15% down and at 5% interest for 10 years.

You seem to think that the above two scenarios are the same thing but they are drastically different.

On the surface the monthly payment and duration are the same so what’s the big deal right?

If the person wants to pay off the house one day after closing. They owe $150k. Whereas if they just got a regular loan they would only owe $100k. So it’s a shitty deal for the end buyer.

Tax wise your investor sold a home for $150k vs $100k. There’s a big difference here too.

You do realize that this also changes the person’s equity pay down rate drastically right? This difference between a 0% loan and a 5% loan in principal pay down is huge.

 

[BizyDad]

If the person wants to pay off the house one day after closing. They owe $150k. Whereas if they just got a regular loan they would only owe $100k. So it’s a shitty deal for the end buyer.

Except his end buyer is facing 20% interest rates and doesn't have the $100,000 to purchase the house outright anyway, so they can't pay the loan off the day after closing.

So it's actually a sweetheart deal for the buyer.

So these are people who don't have the money to actually afford a home in their local market, and he thinks 5% annual return is sufficient offset for that kind of risk profile.

I'm curious if foreigners are even allowed to take title in the country that he's trying to do this in.

And we haven't even discussed the thorny nature of raising capital for investment purposes such as this in the United States. You can't just approach any old person for investment and you can't advertise this kind of thing. Just having that website alone likely runs afoul of regulations. So does this thread...

 

[Guest-5ty5s4]

Why don't you build a business on seller financing by finding sellers who are open to selling to you with seller financing?

Much more reliable.

 

[100k]

It’s confusing because you can’t present a return on investment that way. You tell me that I’m going to buy a house for $100k and sell it to someone for $150k and that’s what I expect.

Instead you should say you are selling the house to this person for $150k seller financed with 10% down and at 0% interest for 10 years.

Or you are selling them the house for $100k seller financed with 15% down and at 5% interest for 10 years.

You seem to think that the above two scenarios are the same thing but they are drastically different.

On the surface the monthly payment and duration are the same so what’s the big deal right?

If the person wants to pay off the house one day after closing. They owe $150k. Whereas if they just got a regular loan they would only owe $100k. So it’s a shitty deal for the end buyer.

Tax wise your investor sold a home for $150k vs $100k. There’s a big difference here too.

You do realize that this also changes the person’s equity pay down rate drastically right? This difference between a 0% loan and a 5% loan in principal pay down is huge.

My bad. What I meant is...

Instead you should say you are selling the house to this person for $150k seller financed with 10% down and at 0% interest for 10 years.

The investor buys a house for $100k, and I will have a buyer in place ready to pay $150k for it .... but the buyer gets 10 years to pay off the $150k, and has to put down a 10% deposit of the $150k. There are no on-going interest on top... in total the investor will get $150k back.

Even so, I understand its not an attractive deal for 90% of investors. Perhaps only 10% of investors will consider what I'm offer as a worthwhile investment. I'm okay with that, I don't want every investor - I want IMPACT investors. So I need to do my best to make fantastic for them.

 

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[biophase]

Except his end buyer is facing 20% interest rates and doesn't have the $100,000 to purchase the house outright anyway, so they can't pay the loan off the day after closing.

So it's actually a sweetheart deal for the buyer.

Yes it’s a great way for the buyer to get into a home.

I had a convo with a friend about this.

What’s the difference between paying $500k for a house at 5% or $966k for the same house at 0%?

Well if you make payments for 30 years, there’s no difference.

But if you want to pay it off at some point, refinance or sell it, it makes a huge difference.

If this person wants to sell for $600k in 5 years, one way they are ahead by $100k and the other they lose $366k.

People look at the payment and don’t realize this huge difference.

 

[biophase]

My bad. What I meant is...


The investor buys a house for $100k, and I will have a buyer in place ready to pay $150k for it .... but the buyer gets 10 years to pay off the $150k, and has to put down a 10% deposit of the $150k. There are no on-going interest on top... in total the investor will get $150k back.

Even so, I understand its not an attractive deal for 90% of investors. Perhaps only 10% of investors will consider what I'm offer as a worthwhile investment. I'm okay with that, I don't want every investor - I want IMPACT investors. So I need to do my best to make fantastic for them.

So I have a few comments about this from a buyer, investor and website perspective.

1) You state a 50% ROI, but that is 50% in 10 years. In reality, the return is about 3.7% per year after management fees. Not that great of an investment.

2) You state that you charge the "homeowner" 5% interest. This makes no sense. The homeowner is leasing the property from the investor. They aren't borrowing any money from you so how is there any interest to charge them?

3) This is a lease option. Maybe it's in the contract but does 100% of the rent go towards the renter's equity or does the renter does not get any equity during the entire 10 years. So if he misses the last 3 payments, he loses out on the home and all the built up equity?

This is not impact investing to me. Overcharging a local, making them pay all maintenance, property taxes for 10 years and no equity buildup just sounds wrong. Can the renter exercise their option at any time during the 10 years?

4) On the website you list the best and worst case scenarios. But they are the same. You say the worse case scenario is making 50% and the best case scenario is making 50%. What investor would feel comfortable reading this? What happens if the renter trashes the place? Does your company pay for all the repairs? What happens if you have a renter break the leases once a year? Then you get multiple 10% payments and you make way more than 50%. These sentences on your website will scare any casual investor. It just looks so bad.

I did a calculation and if you purchase a home at 16% with 15% down for $100k for 10 years, your payment is $1423/mo.
That same house at $150k with $15k down for 10 years at 0% is $1125/mo. So you are saving the buyer $298/mo.

That is really what you are selling. Saving the buyer $300/mo.

Why not just do real seller financing? Put the home in their name, charge them 5% interest. Or better yet, charge them 10% interest. They are still saving money this way. What's the foreclosure process like in this country? Is it difficult?

I think it would be easier to get investors by just saying, purchase a home in a developing country, resell it immediately to a local for 5% increase in price, seller finance at 8% interest with 10 year amortization rate. Help locals qualify for a home and pay less interest. This is a much simpler message.