The ins and outs of seller financing

[Tanner Marsey]

Good afternoon. Doing a little research on seller financing because I have a potential deal that fell into my lap that might be a perfect seller finance deal.

Son inherited home. I live two doors down from it. Its currently rented. He has no desire to be a landlord and wants the current tenants to purchase the property from him, however, they’ve out grown it and want to move. It Needs some rehab but mostly cosmetic and updates. It’s a 2/2 and could easily be a 3/2. As it sits it would probably list/sell for 400k or slightly higher.

I understand the general concept but want to know more about how to structure a deal if the opportunity arises.

My idea is x amount as a down, x amount per month(offer above what he gets now). That part seems fairly easy but I’ve heard about people paying above asking or above market interest rates. Wondering if this benefits the buyer in any way or is it strictly to get the property? Is a higher interest rate and lower purchase price (or vice versa) beneficial to buyer or seller? Who handles all of the logistics? Escrow company and title company in conjunction with a RE attorney?

Are there any books, articles or podcasts you could recommend in regards to this subject? Any advice or feedback? Trying to prepare ahead of time instead of scrambling.

Thanks in advance. I know that was a long winded post and I appreciate you taking the time to read it.