Seller Finance Single Family

[Michael Schlink]

I found a house where I would like to retire in a few years. It’s $349k with $49k down, $1500/month at 4.5%. I plan to rent it out for a few years, then move there myself. We originally planned to close at the Title Office, but they won’t do it unless the seller pays off his mortgage before we do the seller finance deal to me. Seller wants to keep his mortgage in place and take payments from me with a notarized promissory note. Are there some things I should look out for? Should I hire a RE lawyer?

Thanks for the advice

[Andrew Postell]

@Michael Schlink yeah, as mentioned above this is formally called a "wrap" transaction.  This is not technically a "subject to" transaction since there will be an additional mortgage that will "wrap" over the existing one.  So get a different title company.  To find good, investor friendly title companies we need to lean on other real estate investors and ask them who they are using.  Try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.