Owner financing question

[Allan Turcios]

Hi everyone!

Currently working with a friend of mine to purchase her property. She owns the title free and clear so thinking about doing owner financing. What would be the best way to structure this in regards to setting up paperwork and the right documents since a realtor and bank will not be involved? Also, would I be able to get an appraisal and pull a loan out on this property in the future, then use that to pay off the owner? Any clarity and experiences of owner financing would be greatly appreciated! Thank you!

Kind regards,

Allan

[Derek Dombeck]

You will want a promissory note that specifies the terms of your agreement, a mortgage, title insurance, and then you get your property insurance and list the seller as the lender to protect them in the event of a loss of the home. You should seek out a local title company and/or a real estate attorney to close this transaction.