How to Set Up Owner Financing

Question

I understand what seller financing is, but how do you set it up? Is there way to have a 3rd party keep up with the loan amorization? I'm worried about future disagreements that could arise if it is just the seller & I involved.

Thanks.

Olutomi Odukoya · Answer

@Landon Bleau Thanks. S I didn't know the difference. My goal is not a land contract. Just wondering about buying a SFD from the owner. I got that I need a real estate attorney and looks like I can search for a 3rd party loan servicing company. Any other players to involve to protect my interests?

Landon Bleau · Answer

I think you may be talking about a land contract as opposed to seller financed deal, in seller financing, the deed is transferred at closings, as opposed to a land contract where the seller holds the deed until the terms of the agreement are met in full.  Take a look at the below thread that can help answer some questions you may have!

https://www.biggerpockets.com/...

Olutomi Odukoya · Answer

I'm more worried about the amortization of the loan. How can I get a neutral 3rd party involved to keep up with the books and ensure that I get the title once the note is paid in full?

Landon Bleau · Answer

Olutomi - I'm currently looking at this option on a couple houses I've put offer in on, I'm interested in hearing others opinions as well.  If I am to get an offer for seller financing accepted, I planned on going to the local real estate attorney that is recommended by others in my area and working with a title company on transferring everything and getting the promissory note written up.