Doing Owner Financing Correctly
I am a mortgage note investor and end up with a fair number of non-performing notes. A percentage of these will turn in to REOs. I typically sell my REOs off-market for cash to investors or on-market in the conventional manner, depending primarily on property condition.
I would like to begin offering some owner financing on the off-market investor sales to help the investor get in easier with less cash up front. I am thinking of doing a non-recourse loan with a longish amortization and a balloon a year two out. This type of thing seems to me to be very similar to a standard PML/HML funding of a fix and flip deal, the difference being that I am also the seller. I thought this group could help me understand the proper process to follow.
If I were originating a consumer loan, I would use an RMLO. My understanding is that this is not necessary with a commercial non-recourse loan. So my question is, what are the steps required to get the deal done once I have a buyer lined up and vetted? My best guess at the moment is that I would execute a PSA with the buyer and then use a title company to create the note and security instrument, issue title policies, and record the deed and security instrument. What am I missing?