Seller/Owner financing - The Basics

[Paul Choi]

Howdy BP folks!

I did some research on the process of owner financing and found some good info but left me confused and with more questions.  I'm hoping folks here can answer a few questions.

I am currently in negotiation with a home owner for a SFH in Sacramento, CA. She currently rents it out and owns it free and clear but is a tired landlord. If we were to agree to a price, do 0 down with the purchase price at 5% for 5 years with a balloon payment at the end, what are the basic steps I need to take?

1. have a real estate attorney put together a contract for the transaction and note? or contracts from places like legal zoom good enough?
2. Enlist a Title company to do a title search and transfer of title?
3. Escrow company needed?  If we go $0 down, do we need an escrow service?
4. Anything else I'm missing?

This would be my first seller-financed transaction if we come to an agreement.  I know these are basic questions but couldn't find simple answers to them and the process.

If you have recommendations on the services needed above, I'm all ears!

Thanks!

[Sean Carroll]

@Paul Choi contact a title company, I use first American title and they can put together the purchase contract for you that states your loan terms and monthly payments. That is all you need, you do not need 2 attorneys to do one job, you do not need a loan officer or real estate agent since that would most likely kill your deal.