Seller financing question, Help!

[Justin Caputo]

Hello BP Fam!

So I have been looking to get my first deal under contract for sometime now and I finally found my opportunity!

I got a small 2bd/1bth house offered to me that needs some reno. He's willing to let it go to me well under market value ($150k, comps support $300k) and he offered to carry financing (seller financing). I have heard that this is a good way to do your first investment, so that's good. My question is, what should I look for in seller financing, ask about, avoid, would I use the same PSA as a regular purchase, etc. Any advice would be appreciated!

Thanks for your help and advice everyone!

Happy Investing!

JC - The Portland Real Estate Guy

[Neal Collins]

Since you're a realtor I would use the same PSA forms but instead of the oref seller financing addenda I would insert language into a blank addendum. The addendum will basically be instructions for escrow to fill in the promissory note and trust deed. There simply isn't enough to go off of at this point in order to make the claim of interest only via amortized as Melissa mentioned above. Use that as a negotiation point.

You'll want to make sure you have clearly stated the following:

- Purchase price, earnest money, and downpayment

- interest rate and how it is applied

- Payments and term. When they begin, how frequent, when they are made, who they are made to, end date, remainder beneficiary, etc.

- Collateral and the terms around that.

Each one of these can be nausanced, hit me up if you want to chat.