Seller Financing - Real Estate Attorneys Needed (Philadelphia)

Seller Financing - Real Estate Attorneys Needed (Philadelphia)

Investor · Philadelphia, PA · Member since 2016 · 69 posts · 34 votes

Received a phone call from one of our letters we sent out and as I was talking to the seller and listening very closing I was getting subtle hints that seller financing may be a great option for both of us.  One, they were unhappy with the capital gains tax when they sold their other properties.  And two, they were unhappy with the returns they were getting from their money sitting in the bank.  Perfect opportunity for seller financing.  So I explained everything to them in great detail and they were on board BUT he wanted to run it by his attorney first and he had a meeting with him in a couple days.  So the very next day I mailed the seller a letter explaining what we discussed on the phone and how the seller financing option would work listing all the benefits, etc..  That way he'll have something to show his attorney when they met.  WELL, the attorney told him it's too much risk and now the seller doesn't want to pursue the seller financing option.  Are there any attorneys on this forum that are familiar with seller financing and contract for deeds?  I'd like to have an attorney familiar with contract for deeds call his attorney.  Many times, when someone has never heard of something before or knows nothing about it they automatically rule it out and label it "too much risk" or think it can't be done.  

Please let me know.

Thank you.

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  • Investor · Philadelphia, PA · Member since 2016 · 69 posts · 34 votes
    9y
    Originally posted by @Account Closed:

    @George Voutsinos With seller finance, did you offer 20% to 25% down with verified income and tax returns, and if you offer less than the lawyer will say it is a risk for his client.

     John we didn't get into the numbers in great detail.  I did tell him he'll get his asking price and I did show him an example of what type of return he would get over the course of the loan.  The language of the contract can be written to benefit the seller and minimize any risks.  If any payments are missed the property can be deeded back to the seller.  

  • Investor · Philadelphia, PA · Member since 2016 · 69 posts · 34 votes
    9y
    Originally posted by @Account Closed:

    @George Voutsinos The seller will be the lien holder, and a great return is good but did you show any proof that you can make the payments.

     No we didn't get a chance to do that. That's why I was hoping to find a real estate attorney here in Philadelphia that's familiar with contracts for deeds and can reach out to his attorney.  His attorney automatically dismissed the idea without having any great detail, proof of funds, etc.  My guess is that he's never heard of it or never executed a contract for deed and didn't want to deal with it.  I told him in the letter that I can have an attorney draft up the contract or even his attorney could draft it up if he felt more comfortable.

    Also, it's a triplex that's fully rented.  Those payments would help offset if not cover the payment in full each month to the seller.

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    9y

    try Blackstone Settlement Services

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