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Updated over 1 year ago on . Most recent reply

Account Closed
  • Investor
  • New york
0
Votes |
17
Posts

question about selling with owner financing

Account Closed
  • Investor
  • New york
Posted

Hi everyone, I have a question about a seller financing deal. 

Imagine you're purchasing a property below value using a 30-year loan, with the plan to later sell it at the full price using seller financing. In this situation, do you need to tell the lender upfront that you'll be selling it this way? It's not a regular flip, more like a seller financed flip.

Most Popular Reply

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87
Posts
41
Votes
Yue Lehman
  • Realtor
  • Fresno, CA
41
Votes |
87
Posts
Yue Lehman
  • Realtor
  • Fresno, CA
Replied

Sounds like your concern is your lender AKA seller will find out about your future profit that you're worried about. You can put it the seller financing document to pay them out in x amount of years (whenever you expect to sell), while maintaining an agreed upon mortgage amount. If it ends up not selling, have a plan B to refinance with a regular lender to pay out previous lender / seller. 

Once they sell it to you, it's your property and they shouldn't (not that they wont) be concerned with what you do with it as long as you make the agreed upon payment on time. Just my 2 cents. 

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