Seller Finance & Buy and Hold Deals

6 Replies

Approaching my first Seller Finance deal tomorrow 8/2/18! I completely get thet bu concept of a seller finance deal, but there is always more to learn; like the do's and don'ts. I am also open to do a partnership since its my first deal. 

What should I have in my contract and what should I look for in doing a seller finance deal.

Thanks in advance! 
I am located in Charlotte,Nc!

Congrats! I hope it went smoothly. I think like every deal, you want to make sure the numbers work for you. Also, if it is a land contract rather than an outright purchase, you will want a way to make sure that any mortgages/taxes on the property are getting paid. Hopefully you also have a clause that lets you pay them off early without penalty if you sell. 
How did it go?

@Michael Darby  

Seller financing is flexible and you can put whatever you and the seller agree to. I would come up with terms, write them down, then have an attorney write up the contract. Find a good RE attorney that can also handle the closing and escrow if you have it.

@Amanda G. Thanks Amanda! I know the person personally and there is no mortgage on the property and the Annual tax Just became due. So this could possibly be a cake walk. If you have time I will love to discuss upon You're experience with these deals.

The only thing different with a seller-financed transaction is the section of the agreement that addresses purchase price and financing. 

Seller agrees to finance $x of the purchase price at y% per annum payable in equal monthly installments of $z and secured by a first lien deed of trust. (You would need to add any other material terms such amortization, balloon per your transaction.)

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