Seller financing--how is this done?

Question

I am a newbie working on 2nd SFH deal, which will become a rental. I would like to put a request for seller financing in letter of intent to purchase, but don't really understand how it works. Who does the paperwork to set up the note? Would the seller use an attorney, accountant, etc.? Or am I just sending some lady a check for 30 years? I would like a firmer understanding--can anyone advise?

Our first deal went so well and we have excellent tenants, thanks in large part to BP and all the great comments and suggestions we received! Thank you!

Our first deal went so well and we have excellent tenants, thanks in large part to BP and all the great comments and suggestions we received!  Thank you!

Richard Warren · Answer

I have sold properties where I held a note. The actual note is set up by the title company and I use a mortgage servicing company to handle the payments as well as escrow for taxes and insurance. The servicing company handles tax reporting as well.

This is the website for the servicing company that I use. They give a pretty description of how it works:

http://www.noteworld.com/

:cool:

This is the website for the servicing company that I use.  They give a pretty description of how it works:

http://www.noteworld.com/

:cool:

Richard Warren · Answer

It is a flat fee.  It can be billed to the buyer or seller. The monthly servicing fee for this company is $14.95.  I believe it varies based on level of service involved.

:cool:

B R · Answer

I always get such great tips from BP members.  Thank you all so much.  Noteworld did answer a lot of our questions, thanks Richard!

Becky

Bill Gulley · Answer

The greatest fear for any buyer is getting messed over by some old property churner, who does lease/options and has many ways to ensure the deal does not work after getting the down payment and months of payments, only to take it back and look for the next poor guy to take advantage of. This is unconscionable conduct! In fact, I am preparing doc to file suit against a property churner for a family who recently lost their home. The case is beyound just churning, from failure to give notice, unlawful entry, theft and wrongful sale...anyway, that's something else.

If anyone needs assistance or wants some infromation of L/O, installment contracts or seller financed, feel free to contact me, it free! Thye are great ways to market a property, make additional profits and keep taxes lower for the seller and a way for buyers to really buy a home and establish their credit.

Thanks again for your post, I'm excited to have found this site. I will get back on this later after I talk to them. Hey, and it looks like servicing is only $14.95 a month, that's a deal!
Bill

Don Levy · Answer

Lease options are the way to go. Find a property that needs a little work and get the lease payments & price as low as possible. Find someone who wants to buy it & live in it & lease to them at a higher amount & sell at a higher price. Be sure to get a good option fee and you have the makings of a great deal with very little risk or money out of pocket.

Jeffrey K. · Answer

Didnt see the fees Rich.  Is it a percentage or a flat fee?

Seller financing--how is this done?

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