How do you do owner financing in your state?

Question

I am starting a school in which I teach owner financing to real estate brokers.

I know that in each state everyone does it a little differently. Here in New Mexico, the most common instrument for a seller financed note is a Real Estate Contract. Sometimes there is a Deed of Trust. But, I'd like to know how it is done in your state.

What are the instruments and methods for owner financing you use where you live? I am looking for someone in each state whose contact information I can post on my web site.

Can you recommend a real estate attorney in your state who knows owner financing?

Can you provide me with a set of forms typically used in your state?

Reply here or contact me directly. There is contact informaion in my profile.

Have fun...

jay

Marc Faulkner · Answer

In Michigan we use a land contract and promissory note.  Occasionally you will see folks write a mortgage and promissory note but, most seller financed our done on land contract here.  
I like to do what Mike has done and buy homes using cash from my Self Directied IRA and then sell them using seller financing and keep the profits tax free!  
I also buy and sell resl estate notes in the secondary mortgage market Nationwide.  I have been trading in notes since 1999.

Mike Mitchell · Answer

Jay,
            I've been out looking at deals (and seller financing 2 that I recently sold).  Yes I'd be glad to visit with you.
            Mike Mitchell

Jay Koch · Answer

Mike,
            
            I took a couple of days to get back to you because I have been preparing my web site for my first free teleseminar this coming Wednesday evening (2/4/09) at 6:00 PM Mountain time, and now it is ready.
            
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            Some time this week, I would like to contact you about recording a case study about one of your owner financed deals. May I do that?
            
            Have fun...
            
            jay

Mike Mitchell · Answer

Jay,
I've read some of your posts.  You seem very knowledgeable about finance.  I'll be glad to come to one of your courses.  I've owner financed 9 properties in Texas using a Warranty Deed, Deed of Trust with Vendor's Lien and a Promissory Note.  My top return is 32% and my lowest is 20%, these are all based on a 12% note from the buyer.   These rates tend to not go down if Obama sneezes etc..  Out of the 9, I've only had to take one back and that was fairly easy.  I don't see much discussion of the topic on the site, it seems that everyone is wanting to buy notes or make a quick few thousand on the flip of a house.  There is ENORMOUS  money to be made is creating notes with whatever is left of our retirement funds (by the way I've bought and sold 3 properties using a self-directed IRA- another overlooked subject).  At this point I have no intention of selling any of my notes unless I see opportunity to leverage them into more.
Mike Mitchell