Seller Financed Triplex

[Steve Sorensen]

Hi

I’m looking at a triplex in a Minneapolis suburb. Recently, I’ve been looking to buy a single family property as my first property so I was planning to use a 5% owner occupied loan to buy the house. My realtor brought this triplex to my attention and I toured the property and it seems like it could be a candidate for a seller financed property (current owner is an older couple looking to retire and move on so they may be interested in having the cash flow instead of the full value of the home right up front). Since I don’t have the funds or investors for a 20% down loan, this is be the only way I could consider this property (as far as I know).

My question is this: since I’m dealing with realtors, is it reasonable to assume I would pay the realtors 5-7% fee out of my own pocket? The advantage here would be instead of paying 20+% down for an investment property loan, I could get away with paying 5-7% instead, which I can manage. I assume there would be some other attorney and miscellaneous fees as well?

If anyone has any experience with a situation like this, I would love to hear any thoughts, comments, feedback, etc.

Thanks!

[Amber Gonion]

@Steve Sorensen why are you not buying the triplex with a fha or 5% conventional?