Real Estate Agent · Saint Louis, MO · Member since 2015 · 115 posts · 49 votes
Hi there - Disclaimer - I AM NOT LOOKING FOR BUYERS or potential Buyers looking for seller financing:
Where could I go to deep dive on building a seller finance based business - where I am the seller providing the financing? I am considering shifting my business to purchase rental properties and then sell via seller financing as I know there is a great market for that and lots of folks out looking for that. I am a seasoned realtor serving investors, primarily in multifamiy buildings, as well as a seasoned investor with a portfolio. Considering selling maybe one of these via seller financing and then going on to buy purposes for the purposes of selling via seller financing for hands off income. That said I am looking for education to a seller by expereienced sellers to fine tune what I've already been able to collect via experience. I am not, I repeat am not looking for buyers who are seasoned in buying with seller financing to educate me. Where can I go to find a mentor, education or resources for SELLERS on creating a seller financing based business?
What's the end strategy with this? Are you looking to retain the notes as an investment, or are you looking to sell them?
At a minimum, assuming your buyers are homeowners, you'll want an RMLO to underwrite and paper these for compliance, and you'll want to have an attorney draft your loan documents. You'll also want a licensed servicer to service them for you. The major stuff is fairly straightforward.
If you plan to retain/balance sheet these, I'd probably spend some time and resources developing a basis/framework for credit risk analysis, as you'll be bearing the credit risk. If you plan to sell these notes, you'll want to structure and underwrite them to what your end buyers will want/accept. It would probably be worthwhile to hire a consultant for this component to point you in the right direction if you dont have any lending experience.
No the buyer would not be at home owner The property that I have is multifamily property. I'm exploring doing it to support a sale and would maybe consider selling the note but my first step was holding it. I have the added complexity of making sure whoever buys the building is going to run it well so I don't have to take it back. First step is get myself out of being a landlord and maximize the sales price