All Forum Posts by: Jaime Rossini

@Brian Garlington Oops, typo! Lol. I’ve got an attorney lined up, but just wanted to understand the process more before meeting with him.

@Wayne Brooks Thanks, I’ve got a real estate attorney lined up, but not meeting with him for a couple days and just wanted to know what to expect.

yes, thanks for checking though!

Can anyone walk me through the steps and requirements for buying directly from the owner with owner financing?  The property is a 4plex in San Francisco, one unit occupied with a protected tenant.  

Do I need to do a title search or does that happen automatically on change of title?  Do I still need title insurance?  Is the seller required to provide any inspections or other documents? IS there a timeline for closing since there's no bank involved? 

Any advice is much appreciated.  

@Tom S. I’ve been thinking about an appraisal. It will cost me about $1000, but maybe that’s cheap peace of mind. Thanks!

@Jon Kelly Thanks! The units are vacant because the owner is old and doesn’t want to deal with it. He owns more properties than he can deal with and has slowly been leaving them vacant as he doesn’t have the energy to continue managing. The properties are all free and clear, and he has lots of other investments so he doesn’t need the money.

@Josh Caldwell Thank you! That is really helpful. 

I have been looking for a house hack and found a 4-plex with 3 vacant units in a great area. Seller wants to finance 10% down 2% interest only payments for 5 years. I was concerned about being able to re-fi in such a short term and he offered an additional 5 years at 3% with a 2% pre-pay penalty.

He’s firm on his asking price which seems a bit high (hard to find great comps). The place has room for value add (upgrades in all units and the possibility to add a 5th unit).

-Is it normal to pay at or above market rate for seller financing and/or terms like this?

-Interest only makes me nervous as I would not qualify for a loan of this amount. However, with the other units occupied we could cover the interest payments and taxes, live for free, and cash flow a small amount.

I know it’s riskier than that 30 year safe money, but I’m thinking that worst case scenario is to sell after 10yrs if I can’t refinance. Based on market appreciation history, I would likely be able to recoup my money and still have lived for free.

Am I too big for my britches here?

@Brian Garlington Thanks for the insight. Property is in Noe Valley. I don’t think it’s a screaming deal at all. I actually think I would be paying about market rate, just without the competition which looks pretty stiff. From what I’m seeing lately, I believe they will get more than their target price if it goes to market.

@Abhishek Banerjee Thank you!