First seller financing deal.

[Chad Hurin]

Hi BP. Just became PRO.. woo..

I am viewing a property tomorrow that the seller is offering seller financing. I was thinking, If I go through with this deal, It will be my first investment property as well as first time using seller financing. I understand the concept and some steps of seller financing but would like to know what to expect. So, we go back and forth about price/terms of loan/etc but after in contract... where from there? How to pay ernest money for contract? Do I even pay ernest money? is there escrow accounts? Does seller and i go to a lawyer? What to I expect in terms of paperwork? And any other steps?

I just had thought of, 'what if i pay the seller ernest money and/or the down payment and i never see them again'. I know theres a process so i guess I'm asking so ill know ahead of time.

I know I'm going to look back at the forum post and laugh. Sorry : )

Thank you BP!

Chad

1. ps. If anyone was interested or could evaluate. details on property...
2. $70,000, 955 sqft, SFH, 2/1, HOA: 11$
3. tenant occupied w/ $820 (good rental and repair history) lease ends Nov.
4. taxes $900
5. Loan term:
6. 7K down 63k financed @ 5% for 25 year amortized
7. calc says cash flow= $124 and COC ROI=21%
8. What do you think? 

[Chad Hurin]

@Account Closed I have repairs of 5% figured in along with vacancy @ 5%, Capex @ 5, property management (even though ill pm myself for some time), insurance of $43, taxes at $900/year, and P&I or ~$370... leaving CF of ~$124.

$825 - $700(operating expense including P&I) = $125 CF

Does this all sound ok? Enough cushion?

Thank you!