Flipper/Rehabber · Des Plaines, IL · Member since 2017 · 18 posts · 1 vote
Seller verbally agreed on a price, will be meeting with them next week to present an offer to sign. The majority I'll be paying cash, but they agreed to seller financing $60k.
I was just making offers on MLS properties through my agent before this. I wasn't expecting to land an off market deal, and I'm now scrambling to fill in my knowledge gaps.
Do I bring in the standard contract my agent uses? I'm guessing I would need an attorney to setup an escrow for the $60k seller financing? How much should I be paying for this type of closing? I'm open to referrals, as my last attorney's fee seemed high ($2k) for a straightforward transaction.
Unless I'm overthinking this and should handle closing myself? Any advice on what to look out for would be appreciated.
Davis, Great news on your opportunity.... Getting outside your comfort zone is the only way to grow and succeed.
I'm similar to you, some deals under my belt using an agent and MLS, but am exploring seller financing to really grow my portfolio.
I actually spoke to my agent about this. He is also a RE investor and he has facilitated seller-financing deals in the past. He will handle all of the details for a fee of $1K. I plan to work with him to accomplish this when the opportunity presents itself.
If your agent has contract with addendum to include the seller financing with any/all conditions you want, then great. You should have your attorney in on that though. Who found this, you or agent?
Your attorney fee is high - regardless, your attorney can/should be helping you with all these matters, and you should definitely use an attorney :)
Looks like I'm purchasing a different property off the MLS instead, the numbers work out better. For anyone in the future looking for this type of info, find an attorney asap. An agent isn't necessary, but can help streamline the process as mentioned by Thomas. I was going to cut my agent in based on that reply, he's submitted tons of offers and it'd be a nice way to compensate him.
FSBO cold calling is definitely a viable way to source deals. After reading about how FSBO are always looking for top dollar and are hard to deal with, one could research themselves out of even trying.