Baltimore, MD · Member since 2017 · 43 posts · 11 votes
Hello,
I am looking to structure a seller financing deal. I have an LOI put together by my Agent including the seller and my own agreed upon terms and would like to run it by a local Real Estate Attorney to see if I have all sides covered. I am coming to BP to get a quality recommendation, if anyone has a connection or is working with an Attorney they approve of, I would greatly appreciate the connection.
Most lawyers are conventional and don't understand creative financing - so when you find a lawyer you should be prepared and ask these questions:
Loan amount - principal
for how long - term
what's the interest rate (or it could be a "principal mortgage - that is NO interest - all payments go to pay down the loan - my favorite - learn how to ask for this great mortgage)
balloon payment,
will you have a right to discount for early pay-off,
will you have the right to substitute collateral in the event you sell the property (no need to pay off mortgage - just walk the loan to another suitable equity that you own - this way you keep all the proceeds of the sale with no need to pay it off to the owner - you still owe it - but just have another collateral)
will you build in a "first right of refusal" in the event mortgagee has an offer to sell the mortgage
will your mortgage be recorded or will use a promissory note - not recorded
will seller require co-signer or a blanket mortgage -
will seller stay on as a joint venture/hybrid partner for a percentage of the resale profit in lieu of a purchase discount
You just may only need a title company - they can get the job done for less money - lawyers are expensive - talk to a seasoned local investor for hints on asking and getting seller financing.
For us investors, seller financing is the best loan ever.
Wishing you good luck ---- Charles - Baltimore Maryland
Most lawyers are conventional and don't understand creative financing - so when you find a lawyer you should be prepared and ask these questions:
Loan amount - principal
for how long - term
what's the interest rate (or it could be a "principal mortgage - that is NO interest - all payments go to pay down the loan - my favorite - learn how to ask for this great mortgage)
balloon payment,
will you have a right to discount for early pay-off,
will you have the right to substitute collateral in the event you sell the property (no need to pay off mortgage - just walk the loan to another suitable equity that you own - this way you keep all the proceeds of the sale with no need to pay it off to the owner - you still owe it - but just have another collateral)
will you build in a "first right of refusal" in the event mortgagee has an offer to sell the mortgage
will your mortgage be recorded or will use a promissory note - not recorded
will seller require co-signer or a blanket mortgage -
will seller stay on as a joint venture/hybrid partner for a percentage of the resale profit in lieu of a purchase discount
You just may only need a title company - they can get the job done for less money - lawyers are expensive - talk to a seasoned local investor for hints on asking and getting seller financing.
For us investors, seller financing is the best loan ever.
Wishing you good luck ---- Charles - Baltimore Maryland
I've been using legalzoom. They have a yearly service fee that allows you to get attorney consultation. It might be a good route to try. I think they also have a 30 day money back guarantee.