Seller Financing

[Tyra General]

Hi All,

With so many houses on the market, I think there is a great opportunity in assisting homeowners in how to provide seller financing. Is there anyone here that has help a potential client position themselves to offer owner financing? I would like to complete a "how to" and "why seller financing works" manual and am looking for your feedback.

Thanks and God Bless,

Tyra

[Bill Gulley]

Hi, Tyra, I really had to wonder what your "booklet" was about and who it was for. I hope you will take this as advice.
If you are handing information out to people you will be dealing with and they rely on such information you are taking on a great deal of liabilty. There are several issues here.
First, if you don't advise them of a matter that perhaps should have been addressed and their deal goes sour, then what? You could very easily be held liable for any ommission or advice you give. Putting it in writing, for you, is something you should really think about, in fact, I'd suggest you not do it!
Is it a good idea? Sure it is, but the fact that you are on this site asking for input and advice really reflects on your personal qualifications and expertise in the matter.
If someone does not absolutley know EVERY aspect of seller financing and ALL the legal, financial, economic and risk assessments involved with such a transactions, they really need to deal in such matters on their own behalf, by that I mean explain what they see as an advantage to the party they are dealing with and market their position, but under NO circumstances should they appear to be providing legal or lending advice.
All of the information necessary to capture all of the variables and issues in seller financing would easily be volumes, not a "booklet".
If your idea is something similar to a "Landlord & Tenant Relations & State Law" type pamphlet as distributed by a Bar Association or HUD for example, that is a great idea, and one is needed on Seller Financing, but it needs to be done by a Bar Assoiciation, HUD, perhaps an association that has expertise in the subject. When an individual does such things, it's a different matter. It also depends on how material is presented. Ask your attorney. If, on the other hand it comes across as IMO and look what I did, and this is how we did it, you know, like a guru does, then it's not as advisory or instructional. It,s not going to be much good if you put twenty pages together and then have a page of disclaimers attempting to avoid any responsibilty for them taking action on what they just read. Investors will buy that from gurus, but a homeowner might have a different view. I have given seminars to Realtors and attorneys on this topic and when you take the position as being an expert and providing advice, you also accept the liability and responsibilty of being an expert.
There is another forum addressing seller financing here on BP, and I just had to advise someone of the pitfalls in dealing with someone in a nursing home or an elderly person, would that have been in you booklet?
I hope you take this in good spirits, I'm not questioning your intentions, but having to seek advice here speaks volumes. So, before you go boldly where no man has gone before, give this some thought.

I'm sure that when some people see my forum posts they must think I'm only here to rain on someone's parade, that's not my intent, I don't like doing that, but if something is missed I think all of old hands have an obligation to the community to point out potential issues. Hope you see it that way too! Bill