Seller Financing Help from Loan Agent

[Arpad Racz]

Are there any loan agents in the Silicon Valley CA area that would help in putting together seller financing transactions? What is the best way to find a loan agent that would help with seller financing in general?

Thank you,

Arpad

[Chris Mason]

I've done this once in a while as a one-off for a consulting fee.

Basically I pre-underwrite it, collect all the same paperwork I would for a vanilla mortgage, identify why it (presumably) can't be a traditional mortgage, and let the seller/lender decide if they are comfy with that or not.

Sometimes it'll be like "This guy says he makes $300k/yr, I think he makes closer to $250k. I believe this because of X and have calculated what I believe to be his real income based on Y, here is my math. He lies to the IRS and tells them he makes $75k/yr and is self employed, so that's why it can't be a traditional mortgage. His Fannie Mae tax-return-based calculated DTI is 135%, I believe his real DTI is 42% but could never convince Fannie Mae of that."

Other times it'll be "Her down payment is all mattress money. She needs to season it first. I believe she will qualify to refinance out of seller financing and into traditional, paying you the seller back in full, two bank statement cycles after depositing that mattress money."

Once it was "uhhh I think this guy is a drug dealer..."

Needs to be set up so my one-off comp is the same regardless of if the seller decides to go for the seller financing or not, it wouldn't make sense if my compensation were tied to my ability to "sell" to the home-seller and would be a conflict of interest. I'm more "appraising" the borrower as someone that originates A paper loans as my day job. Appraisers get paid the same regardless of if they hit value or not, needs to be the same here or I face moral hazard.