Staring out with seller financing tips?

Question

Hello,

In the past months I have been learning a lot on how to begin investing in real estate.

I learned about seller financing and thought it may be my best option to start since I do not have the capital to invest in real estate with my own money. I know there are some things I need to be wary of when it comes to asking for seller financing, such as "Due-On-Sale" clauses in properties that still have mortgages.

However, I am still confused as to how it really works. I understand that sometimes agents will not be part of the deal? I am not sure if that is right. If it is, then how does the title change works and who would do the paperwork that it requires?

This is the reason I am creating this post, could I please get some tips, ideas, advice that relates to seller financing? This may include but not limited to, how to approach a potential owner to ask for financing. What else should I be wary of.

Any tips about it would be very appreciated!

Thank you in advance!

Simon Aristizabal · Answer

Thanks @Shawn Thom for your response. You are right! I forgot to mention my goal, thanks for bringing that up.

My Goal is to find multifamily properties for buy and hold for rent.

I do understand that it may require extra cash and some times it will not be no money down. I know it also not impossible to get a no money down. It is a matter of negotiating and if I do require money, then I can try to borrow from a local banker to pay for the other part if the seller is not willing to finance the full deal or cannot do it all.

About buying without a realtor I am not sure about, that would be something I need to find out about.

Shawn Thom · Answer

you haven't said what your goal with the properties is.... buy then flip, buy then rent, buy then re-owner finance it.

Regardless, buying a house owner finance is not a no cash deal. Even if you find someone to sell you a property with no money down, If title changes hands, it cost money. If a realtor is involved, someone has to pay them.

There may be pre-paid such as taxes, insurance etc.

As far as a realtor, I don't know how it is in other states, but in Texas you can buy real estate without a realtor. That being said, I suggest getting some one local to walk you through the process. There is a lot of things to be aware of with owner finance.

Danielle McCain · Answer

Great question. I'm interested in responses as well.

Staring out with seller financing tips?

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