Seller Financing Warnings!

[Kody Veit]

I have found myself negotiating a seller financing deal. The property is in a great rental location however needs a fair amount of repairs, somewhere in the ballpark of $30-$40k. It is not currently live in ready and the seller has expressed interest in seller financing largely do to the fact that the property may be difficult for her to sell on the market. My concerns and thoughts are towards putting money into a property that is acquired through creative financing and not through a conventional loan. 

I guess it depends on how the deal is outlined in the contract but is there any possibility / has anyone experienced putting their own money into a property to only have the seller end up backing out of the deal or defaulting on the financed portion to reclaim their now newly fixed up property.

I guess this is where an attorney comes in and a title transfer off the bat would be advised. Any shared learning experiences would be greatly appreciated!

Kody 

[Wayne Brooks]

You want a Purchase, since you are going to sink $30-40k into it. And yes a straight purchase where title transfers and the seller gets a note and mtg. Not anything where title stays in their name.