I have a quick question that I am still a bit stumped about. I am embarking on the Seller/owner financing arena and I am curious to know when I have a house with a Motivated seller that has agreed to seller financing and I stay in the deal obviously to make cash flow out of the deal.
What type of paperwork do I need for the end tenant being that I want the Tenant buyer to either just strictly rent (which I doubt that what I should be doing) or should I have another purchase and sale agreement explaining the terms to the tenant or do I need my Purchase and sale with the seller, be an assignable contract for a qualified tenant buyer for later refinancing?
Sorry of the Crazy direction this question went. I am trying to wrap my head around the strategy I should have for my Renter or tenant buyer as I approach this arena that I need confidence in knowing the direction I need to go with this.
Thanks in advance
I like to buy directly from the seller with a note & mortgage/deed of trust ( or here in WA we have a hybrid called a Real Estate Contract). Once you own the home (a Land Contract or Contract for Deed does not give you title) then the lease and option to buy with the tenant buyer is a separate agreement between you (the owner) and the TB. That's the broad stroke idea. Hope that helps.
The details of both the seller financing and the lease/option can be pretty state-specific. I would seek counsel once you decide what you want to do. The legal advice police will slaughter me if I get anymore specific. Good luck @Wesley Merriweather!
Thanks Steve, that makes total sense! Just those pieces of information helps out alot
It's a lot easier if you tell me about the house
how much equity is and what kind of mortgages on it fixed her arm
I'm going to assume it's in Georgia and there's little equity
Buying on terms you can look at contract for deed or subject to our lease option assignment
Once you have it you can lease it out, lease it w a right of first refusal, lease it with an option, list it
Thanks for the input. I do not have a house right now, currently wholesaling and looking to gain cash flow and the find other uses for the leads that are not ideal for the discounted price. Monday, I have a meeting with a local attorney(did not know finding an attorney alone who is willing to close creative financing was going to be MASSIVE WORK) and due to the less than limited amount of attorneys who are not intimidated with this allows me to go to them with a bit more knowledge in knowing what needs to happen.
The attorney situation has been less than pleasant so I am trying to help any willing attorney with the information I need so he accepting to work with me in the same manner. I am crossing my fingers on the help needed for closings to take place with this attorney. Called about 20 attorneys and he is the only one to even come close to agreeing to look at these deals.
I am not currently focusing on the Sub2 arena just the free n clear properties.
Do you use the right to refusal often within your contract on each property?
Im happy to talk to you on the phone @Wesley Merriweather
818 400 3046
Thanks Brian I appreciate your help greatly. I will reach out to you early next week. Thanks again
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing