Subject To/Seller Financing Contracts

[Adam Bandola]

Hello everyone, 

I'm aiming to purchase a house through subject to/seller financing in the coming weeks and am wondering if anyone in the Cincinnati area would be able to offer some advice or insight. 

Conceptually I understand both techniques well, but am curious if anyone has advice for contracts or attorney's to draw up contracts. My biggest hurdle currently is, what steps do I need to take after getting the seller to agree in moving forward with one of the two methods? What should I have prepared prior to meeting directly with the seller (i.e. agreements, contracts, etc.) ?

Any advice is good advice, so please share any information you have that pertains to the above and outside of it. I look forward to hearing what the BP community has to offer. 

Stay safe and healthy, 

Adam

[Joseph Cornwell]

@Adam Bandola I have done a couple seller financing deals on both sides. As a buyer, your best option is to show the seller why and how exactly it benefits them. Of course, the main purpose is the tax savings, to get the principal pay down of their capital gain overtime instead of one lump sum. Furthermore, maybe they rely on the cash flow from a property, and with them acting as the lender they can keep some monthly income with interest. As for the the contract, I did mine on a regular CABR sales contract that I normally use as an agent. I then sent it to the title company (I use technetitle in Milford) to draft the land contract which is what they call seller financing in Ohio. 

When I meet with a seller, I print an amortization chart showing how much extra income they could make with x% interest over x months of payments. You may want to create a few different scenarios to allow them to make a choice vs yes or no. If you have any other questions feel free to reach out, I am a Cincinnati based investor also. Good luck!