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?
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.
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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