Hello BP! I'm looking for some input....I am in negotiations with a potential buyer interested in purchasing one of my investment properties. We have discussed seller financing and are close to agreeing on terms. However, after speaking with RE attorney this afternoon, I am wondering if it is still a wise option. The SAFE Act and "due on sale clause" have me rattled.
Obviously, this is my first seller financing rodeo....anyone out there had any recent experience with wraps in Georgia? As the seller am I taking on too much risk?
Thanks for all the great thoughts and ideas BP!!
@Paul The law really hasn't been tested, so we're guessing what will happen in front of a judge.
Having said that, you can do a few owner financed deals a year and an unlimited number to investors. Bunch of other rules, regarding interest rates, balloons, lease credits, selling at or near market value, etc.
I've bought a couple with seller financing, but I've not sold any that way. Looking forward to it.
@Paul Montaperto Hope this helps.
Everything is a risk but, "Due on sale" is trigger that gives lenders the option to foreclose, not a law to be broken. Disclose everything to everyone, have a licensed mortgage originator negotiate with the buyer, search for a more experienced attorney who closes wraps and works with creative investors. (get a second opinion from another attorney)
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