Wholesale an Owner Financed Home

3 Replies

I have a potential home that I can get under contract with a owner who doesn't mind owner financing. I have a general Purchase and Sales Agreement but what other contract will be needed in order for me to put in the financing portion of deal. Whatever comments will help. I am starting out so this is new. I could stand to learn much from everyone.

The "Standard" contracts that we use have a section for Financing: Section 2A is "new financing" (Bank loan, private lender, etc.), 2B is "Seller Financing", and 2C is "Existing Financing" (i.e. Subject-to). In each section, you can enter the details of each applicable Note. Before you get into contract details, though, you should have a basic framework of agreement with your seller; i.e. how much down payment and how much is the seller carry-back note, at what terms and monthly payment? Once you have an agreement, then you can fill in the contract with details. PM me and I can send you our agreement which is written for Missouri transactions, and you can have a local attorney modify it for North Carolina if needed.

Hi @Jamall Steele

Thank you for your service. Semper Fi.

Owner financing in North Carolina could be a note and mortgage, sub2 and a note, lease with option, wraparound mortgage, or installment sale land contract.

It is important when you discuss with the home seller all of their options: selling with an agent, leasing the property, or selling on terms in North Carolina.

If if you are new to owner financing, I would structure a letter of intent, spelling out the terms of the owner financing offer, have the seller sign it, then bring it to an attorney to have them draft the agreement. There's no one form - contract in seller financing. And do not skip the attorney.

Thank you to both of you for your help.

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