Oklahoma City, OK · Member since 2016 · 79 posts · 26 votes
Hello BP,
Whenever you find an FSBO property and you are able to negotiate seller financing with the seller. How does the process go from there after the phone call? I haven't done a deal before but I wanted to be prepared to know what to do because I'm afraid that if I don't know the process inside and out I'll come off unprofessional and untrustworthy to the seller with my ignorance especially with the fact that I'm a young investor. Advice much appreciated!
There are several ways to go about it. The seller could owner finance (same way as a bank,) if he owns the property free and clear (no mortgage.) Or "Subject To" or "Lease Option."
My suggestion is to find out what the seller's motivation is and his/her financial situation as far as it goes for the property. Then propose one of the solutions above: simple owner financing (he will issue you a mortgage note and you would get title to the property,) "subject to", where you will get on title and leave the mortgage in his name and keep making payments, or "lease option", where you enter a contract to lease the property with the option to buy it in the future (you can sell it or buy it out.)