Information on making yearly payments on seller financed mortgage

Information on making yearly payments on seller financed mortgage

Investor · Arcata, CA · Member since 2015 · 14 posts · 5 votes

Hello. I want to purchase a property with seller financing.  It would work best for me to make a lump sum payment once a year rather than monthly payments.  Does anyone know where I can find out more  official information about this so that I can share it with the realtor?

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Specialist · Westlake Village, CA · Member since 2010 · 1k+ posts · 781 votes
10y

Official information on negotiating seller financing?  It's whatever the investor & seller will agree to. Have your real estate attorney review & advise you on your contract terms.

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  • Specialist · Westlake Village, CA · Member since 2010 · 1k+ posts · 781 votes
    10y

    Official information on negotiating seller financing?  It's whatever the investor & seller will agree to. Have your real estate attorney review & advise you on your contract terms.

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    10y

     offer 12 times market rent for an annual payment, 

    Eg thousand dollars times 12 or $12,000

     take the $12,000 divided by the equity involved say $144,000

     That would be approximately 12 years  of payments

    Research "imputed interest" and charge the minimum interest possible

    Most realtors are terrible at explaining seller financing

  • Investor · Arcata, CA · Member since 2015 · 14 posts · 5 votes
    10y

    @Brian Gibbons

    Thanks for the reply.  I found more information on installment payments and gave that to the realtor. Unfortunately the seller wants 10% interest.

  • Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    10y

    10% is pretty typical. I have 2 homes I'm paying 10% on while one home I have financed to a buyer for 5%. They are all small notes though.

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