Making offers on seller carry back

[Andrew Farmer]

So far all of my deals have been low all-cash offers. I want to start making Sub 2 and seller finance offers. When you make offers for seller carry back, what can you offer to pay them monthly? I've talked to people who offer 1/2 of whatever rental comps are going for. Example, there is a house with minimal needed repairs and rents in the neighborhood are $1200/mo. Would you be able to offer $600/mo. (principle & interest) until the balance is paid off?

I know every situation will be different but is there any rule of thumb for seller carry back offers?

[Bill Gulley]

A note is a unilateral contract under the law, such contracts cannot be assigned without specific consent of the party receiving the benefit or the note holder in this case. Even if you agree, you need consent. 

An assumption clause allowing a borrower to replace himself with just anyone off the street without consideration to a note holder isn't going to fly in any state.

You can have a due on sale clause, and it is best to, but if there is an assignment agreement then you simply give notice of sale and assignment and that circumvents the due on sale clause, by agreement. 

You cannot shift your financial obligation to another person without consent of the party who is owed, this is a unilateral agreement where the lender relies on specific performance of that borrower, they never had an opportunity to safeguard their investment with Joe Blow, this places the note holder in a position of accepting risk they otherwise would not have accepted. That's why we use the phrase, "consent not unreasonably withheld".  

This applies to all obligations, seller financing, sub-2, wraps, whatever, where you have a financing agreement. 

Sorry, I can't help you with proof reading, LOL :)