Wholesaler · Santa Monica, CA · Member since 2016 · 121 posts · 13 votes
Is it possible in a seller financed transaction, for the buyer to start renovating the property or even do a tear down before the terms of the purchase agreement have been completed (seller totally paid off)?
A- If YES, what recourse does the seller have, if buyer defaults, besides foreclosing?
B- If NO, how can a flipper start working on the deal ASAP?
(It may have been asked before on another forum, if so my apologies.)
@Eduardo Slesaransky once title goes into the buyers name he/she is free to do what he/she wants with the property unless otherwise stated in the terms the buyer and note holder agreed on. Once your ready to sell and open escrow to do so, the seller/note holder will get a payoff statement of the remaining balance to to him/her which will pay him/her off and you take what’s left over in profit. You can also just refinance as well to pay off the note holder/seller. Hope this helps
@Eduardo Slesaransky forgot to say, the seller/note holder, will have to sign off on the remaining amount due to him/her and get that back to escrow before closing.