Free & Clear Homes

[James Hamling]

Any advice from those in the know, as to the paperwork to use when sealing the deal on an owner financed purchase on a free& clear property?

Simplicity rules the day, the idea is to have it pro buyer, legally iron clad, escape options, and non threatening simple language that can be done at the kitchen table, notarized at the bank, and make for a cheap as ez as possible closing/ filing.

I am new on this home front of free & clear homes, which just scream "seller financing me!". As a "flipper" cash flow is never enough, so to expand the rental portfolio while not impeding the flip cash is to good to pass by. Not to mention I am quite literally having these dumped in my lap lately.

Searching for the "innovative" solutions.
Hiring attorneys to draft papers is not innovative. And as I learned when originating "redemptions" in my area, too often the attorneys don't think creative enough to create opportunity.

[Will Barnard]

Searching for the "innovative" solutions.

Hiring attorneys to draft papers is not innovative. And as I learned when originating "redemptions" in my area, too often the attorneys don't think creative enough to create opportunity.

I think you would be surprised, but the right Real Estate attorney may very well provide some very innovative and creative verbiage that is buyer beneficial. Also, you need to worry about the Dodd Frank act and the Safe Act, there is legislation in those that can land you in jail for creating owner financed notes the wrong way. I am no expert on the subject, just making note of it for you.
From what I understand, one of the rules is that the note must be fully amortized.

If you don't already have these easy format purchase agreements you spoke of, it is likely that another investor in your area does, so I would start there, however, the contract is only as good as the verbiage in it, and with lack of experience, you may not have items in there you would likely want, hence, the attorney route.

If you plan to make thousands of dollars flipping deals where the acquisition was with owner carried notes, why not spend the money on the attorney?