I need to know how to structure the deal as far as the forms and contracts I'll be needing.
the owner doesn't owe a mortgage.
she has agreed to owner finance the house to me in exchange for a higher purchase price.
ARV $120k . REHAB. $35k. Punchase Price $30k. Without owner finance.
e haven't talked about the financed price yet. But I have lots of room for negotiation.
You would want to a title search to verify that the title is free and clear.
You can do a land contract (contract for deed) but this is a installment sale and it have pros and cons for the Seller.
The other option is to do a mortgage, in this case, the Seller is acting like a bank. @Bill G. can give you a more detailed explanation for both options.
You need to do a note and deed of trust, not installment contracts. Your title company can probably provide you with what you need, they may prepare the documents, but they may require an attorney to do it, they will have one they work with. Don't take junk off the internet, use what is customary at that title company or in your area.
You need to get a "loan servicer", you can search that to understand why and the benefits.
Understand that financing does not add value to a property, going too high may put your seller in a predatory lending position and there is no reason to pay more for it than what it is truly worth as it sits today. Improving the property by 80K isn't something the seller/owner/lender is involved with, that's yours, if you can do it. Good luck :)
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