All Forum Posts by: Christian I Presant

Cross check what other hosts in your area are asking for a night. Look up VRBO and Abb as a guest would. What are they charging, what are the reviews, what would you do differently, what would you need to provide, etc. You didn’t provide any of your projections like costs you’d expect to pay to furnish, what your insurance premiums would be (different when you rent nightly), what is your loan interest rate and payment (not zillows), what did your inspection report reveal, etc so be sure you’ve at least done that leg work. Do the same for your current townhouse you’d be renting out too. Where I’m from your property taxes are relatively low. 

I just downloaded the Connecticut lease after changing to a PRO member over the weekend.    

I have access to it as a pro and have been using these leases for 3 years now. 

 Use a 3rd party licensed servicer. Well worth the cost. They handle all statements as well as tax forms. 

Congratulations on considering your first rental property investment! Seller financing can be a great option for both parties, but it's essential to structure the deal properly and have a well-written contract to protect everyone's interests. Here's some guidance to help you navigate through the process:

**1. Structuring the Deal:**

When negotiating seller financing, you'll need to agree on several key terms, including the purchase price, down payment (if any), interest rate, repayment period, and any other relevant terms like balloon payments or prepayment penalties. The idea of offering a slightly higher price to entice the seller is reasonable, but make sure it still aligns with the property's actual market value.

**2. Writing the Contract:**

It's highly advisable to consult with a real estate attorney who can draft a comprehensive contract that outlines all the terms and conditions of the seller financing arrangement. The contract should clearly state the rights and responsibilities of both parties, including the payment schedule, the consequences of default, and any other relevant details.

**3. Keeping Track of Payments:**

To ensure transparency and clarity, consider using a reputable third-party escrow service to handle the payments. The escrow service will collect your payments and disburse them to the seller accordingly. This adds an extra layer of security for both parties, and you'll have a clear record of all transactions.

**4. Ownership of the Property:**

The ownership transfer will be outlined in the contract. In most seller financing deals, the buyer takes ownership of the property immediately upon closing, but the seller retains a lien on the property until the loan is fully paid off. This means that while you have ownership and can use the property as you wish, the seller has a legal claim to it until the debt is satisfied.

**5. Protections for the Seller:**

To protect the seller in case of default, the contract should specify the remedies available to the seller. This may include the right to foreclose on the property and take it back through a legal process. The terms should also outline any grace periods and late fees for missed payments.

**6. Protections for You as Buyers:**

As buyers, you should ensure that the contract includes provisions to protect your interests as well. For instance, you may include clauses that address what happens if the seller breaches the contract or fails to transfer the property's title after full payment is made.

**7. Professional Guidance:**

Again, I cannot stress enough the importance of seeking guidance from a qualified real estate attorney who is experienced in handling seller financing transactions. They can help you navigate the legal complexities and ensure that your rights and interests are protected throughout the process.

Remember, seller financing can be a win-win situation, but it's vital to approach it with due diligence and proper legal documentation. Taking the time to get everything in order will set you up for a successful and secure investment venture. Good luck with your rental property purchase!

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@Christian I Presant

Who structures the deal? I do

Who writes the contract? I do (my attorney).

Who keeps track of the payments? I do

Who gets ownership of the property? I do. I get the house at closing just like any financed purchase.

What protections does the seller get in case of a default? My attorney will create a fair and balanced contract. If I default, they will get their house back.

I control every step of the process. Not because I want to be a jerk. Not because I want to get away with anything shady, but because the seller doesn’t know what needs to happen and I need to be the one who ushers this deal to the closing table. I need to make the seller comfortable, answer their questions, provide all the information, and get them to the title company. After the deal is done, I take on the responsibility of servicing the loans. When I do it, I know it is done.

Since this is your first deal, I would highly recommend finding someone in your town who has experience, has a team, and can mentor you through the process. Owner financing is a good strategy when it is done right, but somebody at the table needs to know what to do.

Good luck on your deal!