Seller financing question. Potential 1st rental...

[Benjamin Blackburn]

Hello BP,

I’m a wholesaler down here I Houston and I have a question about a possible seller finance deal that has come up. My ultimate goal is to have cash flowing rentals and I feel like this might be a good opportunity. I’m wanting to know what all is needed to make the deal legit. The seller has a property that he’s willing to seller finance with me with no interest at all. Said that I could put a 5k down payment and pay $300 monthly until the balance is satisfied.

What all is needed to make sure that he can’t just run off in the future and me not have ownership of property? Do I need to be added to the deed? Is there a seller finance contract that needs to be signed and filed with the county or anything?

Any advice would be highly appreciated. Thanks

[Steve Vaughan]

Here in WA, we take our purchase agreement (that has a method of payment addendum outlining the financing terms) to a title co.  They use an attorney in their network to draft the note and deed of trust.

With a Note and DofT, you should be the owner. They (the seller) are the lender.  No land contracts or contracts for deed - those don't give you ownership until paid off.

Sounds a little too good to be true.  Do your DD @Benjamin Blackburn