Payments on First deal

[Jagger Simon]

I am a newbie investor and I have a seller finance deal in the works that’s looking really well, I was wondering how do you make the monthly payments? (Principal,interest, taxes, and insurance) Usually with traditional financing the lenders has it all handled but what do I do in a seller financing situation?? I appreciate any advice thank you

[Chris Seveney]

@Jagger Simon

Should be the same way. You will want them to use a third party servicing company to collect the payments. That way you know payments are applied properly and tax forms are accurate

[Nick Shri]

Quote from @Jagger Simon:

I am a newbie investor and I have a seller finance deal in the works that’s looking really well, I was wondering how do you make the monthly payments? (Principal,interest, taxes, and insurance) Usually with traditional financing the lenders has it all handled but what do I do in a seller financing situation?? I appreciate any advice thank you

You can send PI to Seller, TI can be handled on your own. Definitely use a 3rd party to ensure proper application of the payments.

[Basit Siddiqi]

Are you the one seller financing your property or are you buying a property via seller financing.

If you are buying the property, read through the loan agreement / sales agreement and see where payments should be made to.
If you have any confusion, reach out to the seller.

[Nathan Gesner]

Quote from @Jagger Simon:

I am a newbie investor and I have a seller finance deal in the works that’s looking really well, I was wondering how do you make the monthly payments? (Principal,interest, taxes, and insurance) Usually with traditional financing the lenders has it all handled but what do I do in a seller financing situation?? I appreciate any advice thank you

Are you working with an attorney? You should have an attorney drawing up the contract. They can also create a promissory note, the mortgage, and the amortization schedule that shows all the payments and how much of each payment goes towards principal and interest. If you have a balloon payment, the amortization schedule will show that, as well.