All Forum Posts by: Christian I Presant

There should be an amortization schedule created prior to contract signing so people understand what the payments should be on a monthly basis with no confusion.

Who can create that for investors? It gets confusing when interest is involved.

Amortization schedules can be calculated online. Just look up amortization schedules, and fill in the blanks for: principle, interest rate, term.

But what about if you want to lay extra towards principal every month. It’ll need to take that into consideration. Can you recommend a good one?

Why would you want to add cost to you by adding your cash to the principle?

Because I'll save money in interest by paying off the principal faster. what am I missing?

0 Votes

Long Island, New York

Quote from @Joe Villeneuve:

Quote from @Christian I Presant:

Quote from @Basit Siddiqi:

There should be an amortization schedule created prior to contract signing so people understand what the payments should be on a monthly basis with no confusion.

Who can create that for investors? It gets confusing when interest is involved.

Amortization schedules can be calculated online. Just look up amortization schedules, and fill in the blanks for: principle, interest rate, term.

But what about if you want to lay extra towards principal every month. It’ll need to take that into consideration. Can you recommend a good one?

0 Votes

Long Island, New York

Quote from @Basit Siddiqi:

There should be an amortization schedule created prior to contract signing so people understand what the payments should be on a monthly basis with no confusion.

Who can create that for investors? It gets confusing when interest is involved.

0 Votes

Long Island, New York

So your saying a loan servicing company can service the loan, even if they didn’t give you the loan? And what exactly does a loan services do? I’m sorry I’m very new and just trying to wrap my brain around this. Thanks

0 Votes

Quote from @Steve K.:

Typically the interest rate in seller financed deals is about 1% higher than conventional, in my experience, but it’s completely negotiable of course and varies widely. The process is to ask the seller if they’d consider it, and if you have the chance to explain the benefits they are that the seller gets a large lump sum from the down payment then truly passive income by “being the bank” during the term of the loan, which is secured by the promissory note (they can take the property back if you don’t pay). Due to the interest you will pay, the total sale profits are increased, and often times the seller will benefit by spreading out their capital gains hit. A title company or real estate attorney can help you out with the promissory note, it’s not a complicated document and closing/ transaction costs will

How much typically does it cost to have a real estate attorney or title company write the promissory note??

0 Votes

Quote from @Joe Villeneuve:

Quote from @Christian I Presant:

Quote from @Joe Villeneuve:

Run the payments through any automatic money handling source.

Escrow account, checking account, auto deposits work great.

What about the actual paper work we both sign….who writes that up? And what kind of company handles payments ??

Same answer.

Wow really. Thanks. Would you mind sharing a few companies that write up the promissory note?

0 Votes

Long Island, New York

Quote from @Joe Villeneuve:

Run the payments through any automatic money handling source.

Escrow account, checking account, auto deposits work great.

What about the actual paper work we both sign….who writes that up? And what kind of company handles payments ??

1 Vote

Long Island, New York

Quote from @Chris Seveney:

Quote from @Christian I Presant:

My brother and I are looking to purchase our first rental property. A house we are looking at is not listed as seller financing. However, we are hoping the seller would go for the idea of seller financing and we will pay him a little more. We are doing this because we don't want to have to put so much money down in the beginning. Now my question is this: If he agrees to do seller financing, how do we structure the deal and contract? who writes the contract? who keeps track of the payments? who gets the ownership of the property....is it us right away or does the seller hold ownership until we pay the entire house off? Also, what protections does the seller get in case we were to default on payment? (we wont) what protection do we get if he doesn't give us the house after we've paid? a lot of questions I know but please help experienced investors. thank you.

Chris

Use a 3rd party licensed servicer. Well worth the cost. They handle all statements as well as tax forms.

What kinda of company does this?

2 Votes

Long Island, New York

Quote from @Randy Rodenhouse:

Seller Finance thing is an excellent way to purchase a house. You don't have to go to the bank and you typically don't need a large down payment depending on the seller. As long as you have a professional draft of the paperwork and the risk really is just purchase price and your payments. You'll be surprised that many people seller finance at low interest rates (3-4%) even though current rates are 7+%..

Hey Randy, how do we get a professional draft of the paperwork you mentioned? who writes it up and how much does it cost to do that typically? what is included in this paperwork? the paperwork aspect is my big unknown right now if you could help shed some light on that area, I would really appreciate it. I'm in the same position as Gannon. Thank you.

0 Votes

Chris

2 Votes

Long Island, New York

All Forum Posts by: Christian I Presant

Christian I Presant has started 6 posts and replied 30 times.

Post: How do you keep track of payments with seller financing?

Post: How do you keep track of payments with seller financing?

Post: How do you keep track of payments with seller financing?

Post: Seller financing steps

Post: Seller Financing and setting up a promissory note

Post: How do you keep track of payments with seller financing?

Post: How do you keep track of payments with seller financing?

Post: How do you keep track of payments with seller financing?

Post: first time home buyer through seller finance

Post: How do you keep track of payments with seller financing?