Skip to content
Buying & Selling Real Estate

User Stats

4
Posts
0
Votes
Juan Sierra
  • Massachusetts
0
Votes |
4
Posts

Seller financing question

Juan Sierra
  • Massachusetts
Posted May 21 2022, 07:56

I have an unexpected and unique opportunity to acquire an off-market 5-unit multi-family home (commercial).  I am exploring seller financing but have some questions:  who takes care of all the services that lenders generally perform (title searches, flood certification, appraisal request, etc?


I believe in NY you need to use an attorney when acquiring real estate. Maybe that is who requests all these services?

User Stats

2,373
Posts
3,758
Votes
Patricia Steiner
  • Real Estate Broker
  • Hyde Park Tampa, FL
3,758
Votes |
2,373
Posts
Patricia Steiner
  • Real Estate Broker
  • Hyde Park Tampa, FL
Replied May 21 2022, 11:40

I'm concerned that you're concerned...those are all pretty simple and standard services.  Whoever does the title (the seller normally chooses the agency/agent) would do the searches, flood search, etc).  The appraisal needs to be engaged by the buyer to ensure an arm's length transaction.  

There's a lot more to be concerned with when doing seller financing than division of tasks.  I encourage you to explore all financing options and know that most lenders will not do commercial financing with a buyer without prior experience in managing such properties.  

Congrats on finding this opportunity.

User Stats

16
Posts
3
Votes
Michael Van Brunt
Pro Member
  • Real Estate Agent
  • Cameron, MO
3
Votes |
16
Posts
Michael Van Brunt
Pro Member
  • Real Estate Agent
  • Cameron, MO
Replied May 21 2022, 11:46

Good for you Juan. Like Patricia said a title company should do most of what you asked about. 

Hopefully you have done your due diligence in regards to property inspections, rent roll, etc... I would still hire an attorney to look over the contract you will draw up. If you have, and it all looks good then best of luck!

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

190
Posts
110
Votes
H. Jack Miller
  • Lender
  • Boca Raton, FL
110
Votes |
190
Posts
H. Jack Miller
  • Lender
  • Boca Raton, FL
Replied May 21 2022, 13:33

from your side of it make 100% sure you do all of your normal due diligence, I would not depends on anything the seller tells you. You should independently confirm it. You dont need an appraisal.  You can use any title company you want. The sellers if they are smart should have an attorney who knows what they are doing draft the lending documents, but you can supply them as well if they will go with it. But always proceed with caution.