All Forum Posts by: Tanya S.

Under contract! And the process is not as complicated as one might think... so far. We used the standard VA sales contract, plus a standard seller financing addendum (two pages). Yes, VA has a standard form for this also. Seller's attorney is preparing the promissory note and loan documents (very similar to what Fannie requires). I'm using the second attorney I spoke to for settlement and he was able to review the standard sales contract and addendum before I signed. Not that complicated.

The standard VA seller financing addendum gives you a couple options you can negotiate with the seller. I chose no prepayment penalty of the loan, and the ability to pay taxes and insurance on my own and just provide proof of timely payment to the seller within 7 days of payment.

The only hurdles left are home inspection and seller's review of my finances. Financing agreed to was a bit over $500k, 30 yr amortized loan at 3.5%, 5 year balloon, with a 20% down payment. House comes with tenants, which was another great bonus, since I'll be overseas and won't be able to live in it for the next 3 years at least. When I'm back, I can just move in and refi as an owner occupant. In the meantime, I avoid the investor bank rates as well as all of the origination fees for the loan. I'm liking this seller financing business :) 

Welcome @Jon Kamantigue ! With determination like that, you're sure to be a success. There are a lot of great people and resources on here. You are already ahead with the experiences (ahem... adventures) you've had renovating, selling, and managing real estate - now it's onward and upward! Let us know how we can help.

Welcome @Kristina Inglis! Happy to share my experiences over coffee anytime. PM me.

Hmm.. can it be possible that no one here in Northern Virginia has ever done a seller finance deal? I can't believe it...

@Chris Seveney Thanks for following. Since you are interested, I called around today and one attorney I talked to very kindly referred me to another attorney he works with that was - ahem - more suited to someone who is doing a one off residential deal. Yes, folks, I'm not at the level where I need an HOA set up.. yet :)

The second attorney was also very helpful- and, so far, it seems the process is going to be more straightforward than I assumed. Will do a write up here on BP once the dust settles. I know I would have found it helpful to read someone's experience, since it seems most of the BP seller finance inquiries on here are more about "how can I get a seller finance deal... or is this a good deal?" and not so much on the mechanics of how you pull it off once the parties have all agreed to the terms (who writes the contract? can you use the standard real estate contract form? what other addenda do you need? who drafts the promissory note? How do you set up payments? etc...)  

This is so much more fun than going through the conventional loan process! Don't want to jinx it though since it is not a done deal yet. Stay tuned!

Hey BPers!

I am currently in negotiation with a seller in Arlington on a seller financing deal, and it's looking likely we can come to an agreement that works for us both.

Can anyone in the Northern Virginia (NoVA) area who has successfully done a seller financing deal recommend the attorney and/or title company they used? Happy to share my experience with the community if/when the deal gets done. 

@Marshall M. It's no secret that the NoVA market is on fire right now, and sellers want to get top dollar for their properties. Ask more questions - maybe the condition of the property warrants a lower asking price. Many out of state owners do not realize sometimes how much their properties need work after years of renting them out to tenants. They have been considering selling otherwise they wouldn't have called you - dig around a little and find out why. If their property is in top condition, you're right that low balling probably won't work. If so, partner with a local agent who would love to get that listing and get a referral fee. I'm looking in Arlington for a 3/2 sfh in a good school district. Min 1,750 sq ft. Message me if you find one off market ;)

@Alec Norman

Some thoughts for you based on my experience as an owner/landlord with properties both here in Arlington and in TX:

Its a terrific time to sell in NoVA at the moment. A great agent in our area can get you top dollar and potentially even multiple offers if your house is priced well and in great condition. If I was in your situation, I would sell tax free now and roll that $100k+ into multiple turnkey properties or even a small multifamily and get some serious cash flow going without having the hassle of managing your property yourself (or having that terrible feeling when tenants abuse or destroy something in a home you have cared for and loved). If you buy the right properties in the right market and set up the right property management, it IS possible to have your cake and eat it too - my A+ rentals in TX, for example, have appreciated nicely since I bought them and they continue to put a nice chunk of cash in my pocket every month. 

Our market here in NoVA has terrific appreciation potential, for sure. But for me, I decided I would let my primary SFH be my appreciation play and use any additional money to diversify my strategy so I had a consistent source of cash flow. Once you have both, you have a lot of options. For example, I now have enough equity in my primary residence that I could use a home equity line of credit to finance a flip, buy an additional rental property outright, or invest in a multifamily deal. I haven't used it as of yet, though, and currently have no plans to, so all that appreciation is currently dead equity and isn't earning me much "trapped" in my one house. My TX properties, however, are not only appreciating nicely, but every month I also see a nice fat check, which I just save up and then reinvest into more real estate.

It all comes down to your comfort level and your objectives: what works for one person might not work for you. Either way, it sounds like you are in a great situation - having an appreciating townhouse in Vienna or $100k tax free to invest is a great problem to have!

Hi @Account Closed! As Gerardo mentioned, study zoning laws very carefully before you buy. You don't want to end up with a very expensive mortgage and basement renovation only to find out that the city will have an issue with it. Not sure if you're looking in Arlington, but they have lots of information on this on the county building website. Note that they only approve 28 new units a year:

http://building.arlingtonva.us/project/accessory-d...

Welcome to BP @Gino Vivalda

This is a great community with a wealth of knowledge. Are you looking to invest locally or out of your area?

David - what are you trying to do with the property - flip it or use it as a rental? Rentals are not profitable here in Arlington, so I would not suggest this route. However, the market for single family homes in Arlington, particularly North Arlington is very, very strong, and if you can control your costs, you can do very well on resale. This is challenging however, as contractors currently have more work than they know what to do with so prices have increased. Also, would you be here to manage the project? Feel free to PM me - I can recommend some contractors that may be able to give you more info.