I'm in the process of negotiating a deal with a home owner where she would finance the deal. She owns the property outright and is wanting to sell but has had others tell her that if she just fixes up the property (total rehab project) she would be able to make so much more. I gave her the info regarding the amount of time, experience and initial capital it would take to do the improvements necessary to get her home into the shape it would need to be to put on the market. I gave her the option to do a seller finance deal and she seemed to really like that idea. I have several questions:
When closing on a seller financed deal would the only closing cost be surrounding the title company?
Who has done a seller financed deal and what were the terms that you used? and looking back on it would you have done something different?
What were some of the selling points to the seller that you used to make her feel comfortable and in a win situation?
Where would you find applicable contracts that would cover what is needed in a seller finance deal?
If they aren't doing the work, why are they getting to share in the higher sale price? Will they share in the loss if it doesn't sell for as much as expected? I would only pay them a percentage, or treat it as hard money.
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