Owner Financing Question
Hello. I am purchasing a house for $210,000. I got the owner to agree to owner finance this to me. I will pay $25,000 down, and his mortgage payment of $1900 per month. There is a balloon due in 18 months. My plan is to rehab this place for about $50K and sell it.
Question: How should I structure this in a purchase agreement? Should I use a title company? Should I record the purchase agreement with the local government? I just want to make sure I"m safe as I will be giving him $25K and putting in $50K renovations. Looking forward to your feedback!
@Joseph Duenas yes, yes and add survey and tittle insurance to yourself. Have an attorney draw up the documents or review and use an attorney to close the transaction or a title company. Since you are asking the most basic purchase questions I would encourage you to double and triple verify that the property will indeed be worth much greater in arv than he $260,000 that you anticipate to invest, otherwise you just bought yourself a new personal residence or an accidental rental.
@Don Harris Thank you for the great advice!
