Purchasing property via seller financing

[Kory Muraoka]

Hello everyone, 

I've been doing research and reading books and the forums on information regarding purchasing a property via seller financing. I currently have a duplex lined up to purchase with seller financing. I'm looking for any information regarding what steps I need to take next in negotiating terms of loan as well as legal guidance such as hiring an attorney to draft the terms of the loan. 

I already own a few properties which I've purchased via cash and traditional financing using the BRRRR strategy. However, this will be my first time purchasing a property via seller financing.

Any information and advice would be greatly appreciated. 

[Laura Alamery]

@Kory Muraoka As far as negotiating terms, you want to be a little more generous than the ongoing mortgage rates. It depends how long of a term you are looking for and how much loan to value. The longer the term and the higher loan to value will usually imply that your rate might be higher. But you still want to make a lower offer, knowing that probably there will be some back and forth going on between you and the seller. 

As far as the legalities, you should talk to a title company and they can probably refer you to an attorney. But yes. If you don't have experience, I would hire an attorney, at least for the first seller financing deal. In the future, you can use that paperwork as a template.