Can I do seller financing if the owner doesn’t own it outright?

Question

I currently have a property under contract for 700k. It’s a duplex that’s currently producing 3,600/ month. (300 below market rent)

Owner is open to seller financing. I briefly explained it to him and he likes the concept but he’s going to do some research on it.

I’m not familiar with it either but I know it’s a great way to finance a deal if possible.

He currently owes 260 on a note and has a 30k credit line.

Is it still possible to do owner financing event though the owner doesn’t own it outright?

Tim Herman · Answer

@Cirilo Villar You could do a contract for deed where the seller still holds title until all conditions are met no due on sale or Take the first subject 2 and seller carries a second or the seller does a wrap for the amount he wants to finance.

Chris Seveney · Answer

@Cirilo Villar

Land contracts also depends on the state as some states do not allow any mortgage on the property and some will state the mortgage cannot be greater than the land contract value.

If there is a mortgage on the property it makes it very difficult and risky. What if the seller takes your $ and payments and doesn’t pay the mortgage? The bank is in first position so they will foreclose...

Can I do seller financing if the owner doesn’t own it outright?

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