Seller Financing with Security Escro
I should say in advance my strategy for this property is as a long term buy and hold.
I have found a deal in which the seller is willing to provide seller financing with 10% down for 10 years at 4.5% interest. I have another realestate investor helping me through the process, but I wanted to get some feedback from BP!
We are negociating a 15,000 dollar post closing security escro in which I could use these funds at my discrection to make needed repairs that the seller has otherwise neglected. This is one of my concerns. I am not sure how this works or if this is common?
From what I understand I would hold the title to the house as the trustee, but the seller would hold a deed of trust on the property as security for the debt.
I know this is a red flag, but I am negociating the terms and getting the property under contract with out seeing the interior. What type of escape clauses should I make sure I have in writing in my contract to ensure I get my $900 in title escro back. There will be $100 firm, which I consider an education fee if the property is trash.
If I do go through with the deal, how would you suggest setting up the payment . I have read that I should include the sellers bank account numbers in the contract and include a payment plan.
All advice is appreciated.
