All Forum Posts by: Brian Dvorak

If you sell via land contract, you would still own it as the deed does not transfer until the contract is paid in full. If you sell outright and take back a promissory note and mortgage, they get the deed immediately and you have zero ownership. Which is better? It depends on your goals. With a land contract, you still have liability risks and if the buyer ever incurres liens or judgments, they will attach to your property. (Ask me how I learned that one)

With a note/mortgage you have zero liability and it's much easier to sell the note for cash, should you want to in the future, but you give up control/ownership.

In both cases, you should research your states foreclosure laws to know how much it will cost and how long it will take to get the house back in the event of a default.

Make sure they list you as a lender on their homeowners insurance policy, and not as an additional insured. There's a difference in the order of payouts in the event of a claim.

Don't be afraid of holding paper, its a beautiful thing. But, know the process before you sell.

Great advice. Much appreciated🙏

0 Votes

Quote from @Rose Jones:

Your interest rate should be higher than 6 percent. You are doing him a favor by being the bank.

I don't know how to do the math out exactly. I am looking on this forum and elsewhere to find the calculators.

And remember that you own the property until it is paid off.

Good job on being creative with your investment!

PS - I know the Detroit market has potential - I sure would like to figure it out.

Rose, I hear what you are saying with respect to the interest rate. She is actually doing me a favor also, because the home is distressed. I have been trying to sell it for the past couple years and the best offer I got was 30k, so I'm thrilled to be selling it at 55k and helping the tenant become a home owner.

1 Vote

Hello BP community,

I am selling a SFR to my existing tenant through seller financing. The property is located in Wayne County Michigan. I'm looking for a recommendation for an attorney who can help me write up the loan docs.

Big thanks!

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Hi. You will want to get an EIN number from the IRS. You can do it on their website. Once you have that, file articles of organization with the secretary of state. There is a small cost to do this, but you will also need to pay and provide documentation each year to stay in compliance. You will also need a registered agent who lives in Ohio. Do some google searching for ohio registered agent. You can find services that charge $50 per year for this.

1 Vote

Cleveland, Ohio

Hi,

I have a property in Detroit, MI, and the tenant would like to purchase the property through seller financing. I have never done this before, so would like some advice. I own the property free and clear. I'm thinking of these terms.

Sale price: 55k

Term: 10 years at 6% interest

Down payment: 3k

How does seller financing work? Do I just go through the title company and a bank? Do I need an attorney to help structure the loan and details?

Also, I hold the property in a trust. Should I change the deed to my name?

Any advice is much appreciated.

2 Votes

I agree with the position that Wells Fargo just managed their services poorly. If you have a line of credit with Wells Fargo, just find another bank that will open one for you. I have had my HELOC with BBVA Compass since 2016 and I am very happy with their services.

2 Votes

Originally posted by @Account Closed:

I have one I can share.

Hi Solomon,

I'm also looking for a commercial PA. Would you be able to share with me as well?

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@Allen White I am no longer using the broker I had selected. He was very green, so I wouldn't recommend him. I have decided to sell by owner through craigslist and face book marketplace.

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Thanks Justin

I will definitely consider that.

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@Nathan Estochen

Delaware statutory trust with child series LLCs

0 Votes

All Forum Posts by: Brian Dvorak

Brian Dvorak has started 6 posts and replied 22 times.

Post: My Tenant Wants to Buy the Property through Seller Financing

Post: My Tenant Wants to Buy the Property through Seller Financing

Post: Attorney with Seller Finance Experience

Post: Transfer Deed from Single person owned property to LLC

Post: My Tenant Wants to Buy the Property through Seller Financing

Post: Wells Fargo Abruptly Closes Lines of Credit - The End Is Near

Post: Commercial Purchase Agreement

Post: RE Agent in Indianapolis

Post: Large property with motel, campground and home

Post: What state is your note entity formed in and why?