Owner Financing/Seller Financing

[Alex Geesey]

I will be talking with another investor in the coming weeks who is trying to sell their Duplex (could possibly be a triplex). Looking at the initial numbers for my bank financing (commercial loan because the property will be in an LLC), I won't be able to get the numbers to work by using a loan right away. Looking at it though, I could get the numbers to work in 5-10 years. So I was thinking of potentially seeing if they would be open to seller/owner financing where I pay them a monthly payment for 5-10 years and then refinance with a bank and pay the investor a lump sum final payment. Should the investor agree to this I want to make the process as easy and smooth as possible for them, but I have no idea how the seller/owner financing process should go.

Let's say the investor does agree to this, what is the step by step process for seller/owner financing? (If you could be as detailed as possible, that could be helpful!) Thanks in advance!