Seller Financing vs. Carry back Process

[Shaun Palmer]

Hey BPer's, I am currently looking at some new ways to finance buy-and-hold properties and I was wondering if someone can help me with the details of how owner financing and seller carry back financing works. There are a lot of forum posts about these strategies that are very high level. However, for a new investor that has not done this type of transaction, it can be a bit intimidating. I was wondering if someone can help layout the finer details of how this transaction would occur from the buyer and seller perspectives. What is step 1 step 2, and so on? I realize part of finding a deal is making it happen in the moment but I want to educate myself as best I can before I get into an offer and right now I don't feel confident in this strategy. Any help is greatly appreciated. Questions I have are as follows... I have a seller that has agreed to seller financing, now what? Legally how does this work? Does the buyer technically own the house even though the seller might hold a mortgage on the house? What does the offer look like? How does the sellers mortgage get paid and is there a mortgage processor involved? What does a contract look like and who handles this? Can you still write off the expenses from the buyers side?) This might seem intuitive to someone who has done this before but I am just imagining me asking a seller to do seller financing/carry back and does not know how this works either but has agreed to it. I want to be educated enough to drive the deal and not sit back and try to figure it out then. Thanks in advance. Shaun