I am looking to purchase a property in Texas. The seller wanted to sell it about 1 1/2 ago. But now has decided that he wants the monthly income it brings him until he reaches the age of 65. I have heard about some buyers sending monthly checks to the seller. How does that work?
Does that mean that I have two options if I wanted to send him monthly checks:
1. the seller is financing the deal?
2. I just pay cash, sending him monthly checks, and then at some point, paying a lump sum payment?
Owner/seller financing. It is up to you and the seller on exact terms but you can set it up exactly like you would a regular mortgage and instead of paying the bank you pay the seller directly.
They get a down payment, monthly payments and the ability to foreclosure should you default on the loan.
You get (hopefully) less headache not dealing with the bank and one less mortgage on your credit.
Win - Win