During Seller Finance is there and documents that would need to be changed to my name? Like insurance or the name on paper with the property management company? Hope my question was transparent. Thanks
With seller financing, you’re buying the property. Everything gets put in your name.
Only difference is that the prior seller carries the note instead of a lender.
This post has been removed.
Thank you guys for clearing that up for me
Is everything changed to your name through the deed/title, or is there separate paper work that must be completed
@Deangelo Mack That all depends on how you're buying it. Are they selling you the property in exchange for a 1st position lien on the property? If so, then yes, the deed/title, insurance and all bills go into your name.
If he is selling it to you as a lease option, then no. It would stay in his name until you've exercised the option to buy at the end of your agreement.
I would have a conversation with your insurance agent on how to structure the policy. Some companies have different underwriting guidelines and will do things differently. Will the home be titled in your name and the seller is essentially playing the lender and holding the note? In that scenario you most likely will need to purchase a homeowners/landlord (depending on use) policy in your name then list the seller. This is broad advice though...my suggestion again is to speak with your agent about the specifics of the deal so they can guide you.
@Michael Ablan What if i was sub leasing the property?
If you're sub leasing then the original owner would retain ownership (If I'm understanding you correctly).
If I'm subletting a property everything is still In the original owners name besides the title correct
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing