Seller Financing - What is the next step?

[Ryan Furst]

Hello Everyone,

I have been contacting owners of homes that look to be in disrepair for the past 6 months or so and I have finally gotten in touch with an owner who recently evicted her tenant and is now looking to sell the property in "as is" condition. The property is paid off and she has already made it clear to me that she is looking to sell sooner rather than later.

At this point, I am thinking of approaching her with the idea of seller financing but I am unsure as to what my next steps should be. I have been working on coming up with a purchase price and terms to present her with, but after that I am unclear.

I have read the blogs and forums and feel as if I understand the concept of seller financing, but I do not have a full grasp of the process from start to finish. For example, who the key people are that need to be involved or when I should reach out to them. I have read that you should have an attorney look over your contract before you present it to the seller, as well as have a title company transfer the title after you come to an agreement with the seller. 

Am I getting ahead of myself trying to figure this out before I have even agreed to a price and terms with the seller?

This will be my first home purchase. I am looking to move in, do the repairs myself and eventually use it as a rental.

Any advice would be extremely helpful.

Thank you,

Ryan

[Hai Loc]

You can take a 2 step approach. You can draft an LOI "letter of intent" that discloses the major factors in the deal

1) purchase price

2) closing date

3) initial deposit

4) seller financing terms

5) contingencies (inspection, survey)

6) items in house (fridge, stove, BBQ etc)

You should include a time frame of when an original offer will be drafted whether it is in 5 days from offer acceptance or when attorneys get involved.

If you can find an attorney that can help you with no upfront costs then go that route but I wouldn't spend money on anything and find out they don't like the offer and you did all that for not. 

Simple LOI can get the ball rolling

Good luck