how does the realtor get paid in owner financing?

[Kevin Hart]

hey BP'ers, 

I found a deal for a 6plex, motivated seller ready to retire and not deal with tenants anymore. They are interested in owner financing (they like the idea of using this basically as an annuity for 3-5 years). All the numbers look good, but myself and the seller have realtors involved, so how does the realtor typically get paid on this? will myself or the seller have to come out of pocket for their commission?

obviously ideally, i would have found this property on my own and wouldn't have had realtors involved, but I didn't know owner financing was a possibility until i happen to meet the owner while my realtor was showing me the property. 

any clarity would be much appreciated. thanks!

[Brandon Sturgill]

@Kevin Hart Check to see if they have an exclusivity agreement...the seller may be required to pay the listing commission irrespective of how he sells the property. On killer deals where an agent is involved, I always offer to pay their commission (as the buyer) to make things run smooth (the agents are typically the biggest obstacle because they don't get the concept of seller financing). Offering to pay their commission usually gets them behind the deal...and it shows good faith to the seller that you have their best interest in mind. 

Alternatively, the commission (if due) could be paid at both closings...though not appealing. The agent can get x% when title transfers and x% with the release of mortgage when the lien is settled in full.

There are a dozen other iterations of this...your main goal is to make sure the agent does not kill the deal because of lack of understanding about the transaction...

Let me know if you have follow-up questions on this...