Wholesaler/ Investor · Houston, TX · Member since 2014 · 491 posts · 113 votes
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?
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
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.
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y
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.
Real Estate Agent · Killeen, TX · Member since 2016 · 71 posts · 25 votes
9y
At closing make sure title is in your name and that he only has a lien against property once paid lien will be released it is best to have real estate attorney draw up contract to ensure everything is in writing.
Investor · New York, NY · Member since 2016 · 91 posts · 46 votes
9y
sounds really good.. but depends on the value of the place, as well as overhead costs. Always do this calculation against standard institution loan pricing for a loan.