Seller financing and personal guarantee

[Tim Zajicek]

Looking at purchasing a 9 plex and the current owner is interested in seller financing. Is that the same thing as a "contract for deed." Also, I would be buying the complex in the name of my LLC, but the seller is wanting me to also personally guarantee the deal, is that common? I'm assuming most banks would do the same thing??

[Odie Ayaga]

Originally posted by @Tim Zajicek:

Hey Erik- thanks for the comments. Is there a better/best way to set up the seller financing? Something better then “contract for deed” or is that pretty standard. Does it matter that the property isn’t titled to me? 

Presuming they own the property free and clear it would just be a standard sale except they would be your lender instead of say Wells Fargo. A proper attorney or title company could handle the documentation.