Owner financing in Alabama.

7 Replies

Calling all those lucky dogs that have ran down this road with a property!

Looking for advice on documents and past experiences on this creative financing. 

Do's and Don't's and anything I should prepare for.

Thanks in advance. 

Search these terms in the search bar one at a time

Buying controlling - lease option, sandwich lease option, lease option assignment, contract for deed, subject to existing financing, land trust, wrap around mortgage, master lease, master lease option, private lender, joint venture partner, self directed ira

Selling on terms - lease with option, lease with rofr (right of first refusal)

There is more but that is a good creative list

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Advice - Listen to a lawyer that has prepared alot of lease options, sub 2s, land trusts, private lender and jv docs.

DO NOT listen to seminar junkies.

@Josh Anderson  BP of course! Once you do the search, to the left you will see a list showing People, Forums, Blogs, Podcasts, etc. There's probably going to be several listings, so go through them all, pick the ones that seem to fit what you're looking for and are in the last year, and start getting educated. 

If you see someone in a forum that posted and you want to get their attention and comment on their comment or ask them something, you @mention them, click @their name and a drop down comes up, click on their name and it will be highlighted in the post and they will be notified to look at the post. 

Good luck! Also, Welcome to BP! This is THE place to find the information you are looking for, from people that are doing what you want to be doing, and get real time advice (or close to it!) Have fun! 

P.S. If you have a specific question, ASK it right here! 

Josh - What did you find out? I'm curious about this as well. My real estate lawyer says it is legal to owner finance but it seems like a lot of people here say its a good way to get in legal trouble. No idea what to believe.

Seller financing is now regulated and there is now a lot more risk for the owner of the property, they are becoming harder to find and hard money loans on properties is extremely risky for the investor who borrows the money.

If the property has a mortgage our company LeaseOwn Homes does lease options for three years max to avoid any problems with due on sale clause or it looking like seller financing.

Our company LeaseOwn Homes creates a contract that is a win win for all parties to avoid trouble later, and try to make sure the contract we are assigning protects everyone and we try to make sure no one can take advantage of anyone else.

Because LeaseOwn Homes makes every transaction a win-win for all parties it makes it much easier to close deals.

what is the problem with seller financing, so long as it is Dodd Frank compliant - which I believe lease options also have to be these days?

A pure lease for one year and a pure option where option fee is not financed but a lump sum should be fine without Dodd Frank.

My problem with the CFPB is all about consumer protection. Many lawyers may look at the Dodd Frank (OO Owner Occupied) lawsand make a case against the Seller.

The only way to protect yourself is to underwrite the buyer with a RMLO.  Then you have a safe harbor.

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