All Forum Posts by: Dennis Weber

Listen to  @Wayne Brooks

To propose something you will have to put the numbers together That is, number of months, interest rate, present value ( or what you are paying for it) and monthly payment.   Amortize it out and show how much money she can make. Everything else you should have an attorney write it up. 

I've used them several times. They'll let you know usually between 10-15 days if they'll insure title but they don't close that quickly. if you have any code enforcement liens you'll still have to pay those where a quiet title gets rid of them. Also, if no liens, I've used Best Title where they'll give the buyer a quiet title and close in about two weeks. It's 1200 bucks. Especially, if it's in Marion County. Marion County is really good at doing notifications it speeds things up a bit. A quiet title is better than the tax certification so if it's cheaper, faster, and better, check it out. 

It will have to be in the contract who is responsible but in my case always the borrower. It can be escrowed for the lender or servicer to pay.  I make sure I'm listed as loss payee on insurance and will be notified if premium is not paid or terminated. It's easy to check if taxes are paid. Failure to pay is a default and bad times are a coming for borrower. 

Well, I'm sure there are people on BP that have seller financed a lot more than me. My properties have tax deeds from tax liens and are somewhat distressed so my loans are only between 20-50k. I try to get my investment back plus what it costs to clear title for a down payment. But it's fun to be creative. For instance a guy bought a property from me for 20k. It isn't worth 20k. We're closing next week. He didn't really have much for a down payment he wants to live there while he's rehabbing. It's not habitable and needs money to replace the roof, install furnace, and other things before the cold air moves in. So fine. $1000 down. Once he does a few things he's tripled the value of the property. I use land contracts and insert a clause that until 25% is paid, I can evict, not foreclose.  It is very important to me for the borrower to have what?  Skin in the game. If I lose, they lose. With that said I would never give a loan to someone that I think will fail or default to get the property back. 

Again, I hope other more seasoned financiers give you some good tidbits.  Land contracts are forbidden in some states. 

A good down payment is my largest incentive to finance someone. At least to cover foreclosure if I have to. Offering seller financing increases the market for buyers and you can usually get more for the purchase. Don't know if that answers your question but I think those are my only two incentives to offer financing. 

@lance 

@Lance Marshall  you pay capital gains tax

@Ilona Kovacs states have different laws for this. Many allow you to keep only 10%. Some counties will not accept POA from you and will only deal with the homeowner. I would think that it would be a trustees duty to give homeowner the surplus in a foreclosure.

Yes, and buyer will be in default. 

@Lance Marshall  no, if the homeowner pays the taxes then there are no taxes due. You have to determine yourself  if 10%  within 6 months is worth it or not.