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Creative Real Estate Financing

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Chad Hurin
Pro Member
  • Investor
  • San Diego, CA
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55
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First seller financing deal.

Chad Hurin
Pro Member
  • Investor
  • San Diego, CA
Posted Feb 26 2015, 21:09

Hi BP. Just became PRO.. woo..

I am viewing a property tomorrow that the seller is offering seller financing. I was thinking, If I go through with this deal, It will be my first investment property as well as first time using seller financing. I understand the concept and some steps of seller financing but would like to know what to expect. So, we go back and forth about price/terms of loan/etc but after in contract... where from there? How to pay ernest money for contract? Do I even pay ernest money? is there escrow accounts? Does seller and i go to a lawyer? What to I expect in terms of paperwork? And any other steps?

I just had thought of, 'what if i pay the seller ernest money and/or the down payment and i never see them again'. I know theres a process so i guess I'm asking so ill know ahead of time.

I know I'm going to look back at the forum post and laugh. Sorry : )

Thank you BP!

Chad

  1. ps. If anyone was interested or could evaluate. details on property...
  2. $70,000, 955 sqft, SFH, 2/1, HOA: 11$
  3. tenant occupied w/ $820 (good rental and repair history) lease ends Nov.
  4. taxes $900
  5. Loan term:
  6. 7K down 63k financed @ 5% for 25 year amortized
  7. calc says cash flow= $124 and COC ROI=21%
  8. What do you think? 

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