Seller Financing - Success Stories and Guidance Going Forward

[Sebastian Scott]

Hello BP World!

I am an out-of-state investor, based in the Bay Area, who primarily focuses on Buy and Hold SFHs in the midwest. I was recently approached about a potential seller financing deal, which I ultimately passed on, but have since then researched the topic and would like to prepare myself if the right opportunity / deal presents itself in the future. I would love to hear from the BP community on successful seller financing deals and any guidance on best practices or some basic Do's and Don'ts when structuring a seller financing deal. 

For further context, below are the type of questions that I am still looking for answers on and guidance that would be appreciated:

1) For out-of-state investors, after finding a seller financing deal, do I need to or should I work with a local real estate agent or lawyer that specializes in these type of deals? Is there a fee structure that works best between a buyer and an agent / lawyer who helps find and close on these deals (ex: 3% of the purchase price)?

2) If a property needs to be updated (ex: new floor, paint, fence), how should I go about incorporating language into a deal that allows me to make the updates I need while providing me with the proper protection financially and operationally?

3) In addition to #3, is there other languages or clauses that should be structured into the deal that protects both the buyer and seller?

4) If I were to find and structure a long term note with fixed monthly payments (ex: 20 years - principle and interest included), but half way through the deal (ex: at the end of year 10), I want to pay off the remainder of the principle balance. Am I likely obligated to also pay off the "would be" interest for the remaining 10 years of the note or just the principle balance?  

Thanks to everyone who contributes to this post with their invaluable guidance and looking forward to collaborating!

Sebastian