Owner financing

[Justin R.]

Hello BP friends, I have a few questions.

I am selling an investment property out of state (Indiana) and offered the buyer seller financing. I offered 1.25 over prime (which is a total of 4.75%) over thirty years with 10 percent down. The buyer is paying full ask price and the property has been on market for 45 days.

I believe I need a real estate attorney in the state of the transaction to write up the contract, is this correct? Who will facilitate the logistics such as amortization schedule, fees, penalties, etc? Does this lye on the attorney, title company or myself? Any due diligence you suggest? 

Any information in regard to seller financing would be great. Thank you for your help!!!

[Justin R.]

@Curtis Harvey I still have rentals in various places throughout the South, and Midwest, including Indiana. I've always utilized property management because I enjoy the idea of "passive" investing, although I use that term loosely. I run my numbers to include PM fees so it's not an issue.

I sold the property because it wasn't performing as a rental. It ended up being a decent situation because I sold the property and am carrying the loan. Due to this structure, I was able to ask a higher price than I feel I would have if it was a conventional buyer.

I hope I answered your questions.