Seller Financing sale (how did you do it)

[Quentin Mitchell]

Has anyone done a land contract or seller financing? How was the process and do you think there is a system to find these types of deals or it's just luck of the draw. 

[Kata Walters]

I did a seller financing deal back in February of this year.  My agent heard of the deal which was off market and brought it to my attention. I have to say it was so easy I wish I could do them all the time! However the circumstances were perfect for this particular deal and I have seen some seller financed deals advertised online with crazy terms that were not investor friendly. In the deal we did the purchase price was just 43k , 10k down and the remaining balance on a 30 year amortization at 10% with a 5 year balloon. The property is rented for $1000. I reason I liked seller financing for this deal was 1) it's hard to find a lender to loan on such a low amount 2) I didn't have to say cash to purchase 3)I saved on origination fees, other lending fees and appraisal etc just the attorney and title insurance costs etc . Yes the interest rate is high but I still cash flow net $400 a month so the cost of the money is irrelevant as log as I am still making money :) Exit plan is to bundle it with several other singles I have on the block into one blanket loan within the 5 years but I am in no rush. I may decide to sell it even so I have a few choices. Anyway I am rambling on but seller financing under the right circumstances can be a great creative financing idea.Just make sure you use an attorney so you don't end up with any surprises. Did I mention no credit checks? I actually have good credit but it's nice to not have to have your credit run every time you want to buy. To add briefly I was looking at a seller finance deal in Memphis but the owner wanted to do a land contract and I said no. I was not comfortable with a deal that I could not take title and hold the deed in my name. Thats where I draw the line :)  Hope this helps?