Rental Property Investor | Realtor · Jacksonville FL | Savannah Ga |Raleigh NC · Member since 2017 · 467 posts · 161 votes
I hv no real life experience with this exact transaction as buyer,, so appreciate your insight for action..
- I'm sitting at kitchen table with seller.
- I have a 2 page investor friendly contract, and prepared to use expensive hard money cash as-is.
- seller is suddenly willing, and wants to finance deal, X$ a month for 6 months or more, balloon at end of 1 year max or less to pay off.,
- Buyer is Virginia LLC , there is full disclosure of everything
- Florida property, Jacksonville Fl..
- seller balance owed 63k, titled in seller name, being rented out to family who are leaving in a month, (tmi; repairs light 22k, arv 195k, rents $1350, purchase price 120k
- possible hold to rent or Exit as flip.., ..to pay off balance,
my Question is on paperwork and pivoting..:
- Can I contract this on the spot at kitchen table with same purchase/sale contract financing showing cash, get it done, and then get an addendum with financing terms signed and give to closing attorney?
- Can I avoid setting up land contract right now and get this done straight forward as is.
- does she, being rental owner have to vet llc buyer? if so how?
(THX!! really appreciate your experience and suggestion..im super interested in S.F in general but want to apply it here and also not lose it .. , and want to get this done as hassle free and straight forward as possible)
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
7y
You can write your terms right into your purchase agreement. Then pass it to an attorney experienced with land sales to draw up the note and deed.
Make sure you make the contract contingent on a title search coming back with no more than X in liens. And make sure you record your land sale to minimize the chances of any of the sellers future debts being attached to the property.
IMO for a loan balance of only $63K, I would rather get an outside loan to pay that off and then have a seller backed note for the balance. Get the title in your name to avoid the risk of liens and lender due on sale call.