seller financing in San Antonio, TX

[Xueling Xu]

Dear investors,

I just signed up BiggerPockets today. I was searching seller financing in San Antonio, TX. I am in real estate, buy and rent out since 2020. beginning level. I am planning to sell one townhouse. and want to do it seller financing in Nov. 2023.  I watched the forums had one post asking the same question but it was like 5 years ago.

currently, with the good credit like 740 above, the 30 yrs loan is 6.75%. I am thinking of asking 10% of interest. maybe no balloon payment?

 can be 25 or 30 years loan. with 10% down at least. I also thinking the buyer should have minimum credit score above 580.

Can SA investors give me some steps, and paper works,  escrow accounts, etc. recommendations? I did talk to some real estate attorney and their price for seller would from $650-1000. is it reasonable price?

any advice, suggestions...

Appreciated your help and advice!

Xueling Xu

[Mitch Messer]

Quote from @Xueling Xu:

Dear investors,

I just signed up BiggerPockets today. I was searching seller financing in San Antonio, TX. I am in real estate, buy and rent out since 2020. beginning level. I am planning to sell one townhouse. and want to do it seller financing in Nov. 2023.  I watched the forums had one post asking the same question but it was like 5 years ago.

currently, with the good credit like 740 above, the 30 yrs loan is 6.75%. I am thinking of asking 10% of interest. maybe no balloon payment?

 can be 25 or 30 years loan. with 10% down at least. I also thinking the buyer should have minimum credit score above 580.

Can SA investors give me some steps, and paper works,  escrow accounts, etc. recommendations? I did talk to some real estate attorney and their price for seller would from $650-1000. is it reasonable price?

any advice, suggestions...

Appreciated your help and advice!

Xueling Xu

If you're planning to sell to an owner-occupant, I'd recommend you engage a licensed San Antonio mortgage loan originator (MLO) who has closed seller financed transactions. (You may actually be required to use an MLO to be compliant with Dodd-Frank regulations. Be sure to check with a knowledgeable advisor.) 

If you're selling to an investor, you should run the rental analysis financials using your proposed down payment and monthly to see if those terms even allow an investor to earn a reasonable cash flow and cash-on-cash return.

Sometimes, even with seller financing, it's not a good deal.