My 1st Owner Financing (Help Needed)

[Daniel Toshner]

Hey BP!

As always thanks in advance as I have gotten so much from this forum already!  

Anyhow, I have a tenant that is wanting to purchase the rental I own.  I have never done an owner finance for a renter so I would just like to know the basics on what to look out for and what to do?  

Essentially best practices for ensuring I'm protected from anything and taxes. Thanks!

[Ed Emmons]

If your tenant is a real estate investor you should be ok with Dodd Frank law. But if not you will be subject to mostly same laws and disclosures as bank. I believe you will need a third party to write mortgage. You Would be better to create a lease option contract that will meet Dodd Frank criteria. There will need to be specific things included and stuctured very specifically. You should seek some qualified advice on this one. I've done more than 50 owner financed deals in the past but am still not 100% clear on these new regulations and I have had to modify my contracts.