Financing Owner

5 Replies

Hello all, Just looking for any knowledge here.  What should a seller in California considering owner financing look out for?

Should a real estate lawyer always be used?

Do mortgage brokers handle or help with these types of loans?

Is a lease option or some other rent to own structure a better way to go?


I read several forum posts and blogs before I posted this and then some more after. I was just trying to get some more current information and hopefully start a conversation with someone that has hands on knowledge.

The seller should look out for he same stuff they would normally do or that a lender would do. They should also make sure they really want to take this kind of risk. Sounds like some people use this as a tactic to try and string out the seller and renegotiate later for a deeper discount. Not that that's bad, just that they should consider it.  

Looks like you should always use a lawyer in these situations.

Granted I only spoke with one but from what I understand a broker would try to come up with some creative financing or private money to make the deal work rather than assisting with structuring the loan.

It seems like a lease option or some other rent to own program would be easier to get the property back if it fails but you wouldn't be able to get a substantial down payment. Also you would be liable for the property still as on its still yours. Property tax, insurance and what ever the buyer is doing with it (meth lab, pot farm, antique collecting).

If you have a few minutes and notice anything I missed or am wrong about here please feel free to point it out.


Hi Jeremy, I'm on the other end looking at buying with owner financing. My feeling is that a lawyer is the best option. I've come across the same resistance from agents who want me to use their own private financing connections and I get the idea most agents aren't qualified to write such a contract especially if there are any unusual considerations.

My question to you is- Do you feel it is a good idea for both parties to use the same lawyer to write the contract and follow the deal through? That is, assuming both parties are clear on what they agree on and there is a minimum of trust or workability? Seems this might save each party 1K at minimum.

Hi Lynn, thanks for replying.

For me it would depend on the situation. I believe you shouldn't expect legal advice from a lawyer that isn't working for you or at least going to be representing you if every thing goes bad.

When I read your question I was reminded of a time I thought I hired a lawyer to help another person and myself (this was not real estate related). When a desagrement came up I was told by the lawyer that he could no longer help me. He said he would be representing the other person from that point forward because he was originally approached by them first.

Someone said that legal help is like insurance. That 1k could end up saving you a lot of money without you ever even knowing it.

Hope that helps, JC

I had pictured both of walking in together to hire the lawyer. But... I don't know.

We are talking very small town here...

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