Seller Finance ( taking over the deed)

[Dominique Mitchell]

I currently have most of my capital tied up in my first deal and I am wanting to get moving on my second deal.

I have found a few deals that are willing to do seller finance, my question is.

If I do a seller finance deal will I take over the deed for the property on closing?

Property is owned free and clear. The reason I ask is because I would go in and do some rehab and then refi the property and payoff the seller. But if I’m not on the deed I can’t get the refi done correct?

[Chris Tarpey]

You, the buyer, sign both a promissory note (promising to repay the loan) and either a mortgage or deed of trust (allowing the seller to foreclose if you fail to pay). In return, the seller signs a deed transferring title to you. Because you hold the title, you can sell the house or refinance. But you must keep making the agreed-upon payments to the seller.