Becoming the bank. Financing the sell of my own home.

3 Replies

Evening BP’ers, I have a property I 100% own. Instead of selling for a lump sum I’d like to sell and become the bank. I’d like to finance the property to someone who maybe can’t qualify for a conventional loan and secure a loan for them at slightly above or at the market interest rate. Does anyone know how to go about doing this from a legal/underwriting perspective? Who would I need to involve to make this happen? Real estate attorney? Any companies that exist to help people through the process already? Any books you can recommend? Thanks in advance! Like Warren Buffet said “compound interest may be the greatest invention of our time”.

I’ve done it a few times

Very easy.   Go to a real estate Atty and tell them what you want to do.   They write up the contract and you sell it

BUT believe it or not, thanks to Dodd Frank law it is illegal to sell for more than if a person was going to get their own financing.  

Also depending upon where you live forclosong could be a long and costly process.   

Based upon my experience I will never finance the sale of a house again.  

I’ve done it a few times

Very easy.   Go to a real estate Atty and tell them what you want to do.   They write up the contract and you sell it

BUT believe it or not, thanks to Dodd Frank law it is illegal to sell for more than if a person was going to get their own financing.  

Also depending upon where you live foreclosing could be a long and costly process.   

Based upon my experience I will never finance the sale of a house again.  

I think my contract for seller financing is 1or 2 pages. The seller had his attorney write it up and we both signed it. I just send a check each month to the previous owner. I'm not paying interest so it's pretty straightforward.