All Forum Posts by: Sebastian Scott

@Charlotte Dunford this is great information and thanks for your input! Would you be willing to share some more details on how you found your seller financing deals and the actual deals itself / how you structured them?

@James Wilson glad to know that we are thinking about some of the same questions and challenges! 

For #1, I will likely use my agent and their team to help me close on a deal and be my ears and eyes on the ground, same way as I have approached conventional financing. 

For #2 and #3, I agree that verbiage would need to be creative and I am curious to hear what others may be willing to share.

For #4, I appreciate your perspective on this and I would likely try to negotiate an escalator clause in the sense that the option to expedite the final balance is available to me, even if there is a penalty payment of some kind.

Thanks again for your input and looking forward to hearing from others.

Sebastian 

@Brian Garlington I am focused in Missouri and Ohio. Do you have any stories or guidance you can share on this topic? 

Hello BP World!

I am an out-of-state investor, based in the Bay Area, who primarily focuses on Buy and Hold SFHs in the midwest. I was recently approached about a potential seller financing deal, which I ultimately passed on, but have since then researched the topic and would like to prepare myself if the right opportunity / deal presents itself in the future. I would love to hear from the BP community on successful seller financing deals and any guidance on best practices or some basic Do's and Don'ts when structuring a seller financing deal. 

For further context, below are the type of questions that I am still looking for answers on and guidance that would be appreciated:

1) For out-of-state investors, after finding a seller financing deal, do I need to or should I work with a local real estate agent or lawyer that specializes in these type of deals? Is there a fee structure that works best between a buyer and an agent / lawyer who helps find and close on these deals (ex: 3% of the purchase price)?

2) If a property needs to be updated (ex: new floor, paint, fence), how should I go about incorporating language into a deal that allows me to make the updates I need while providing me with the proper protection financially and operationally?

3) In addition to #3, is there other languages or clauses that should be structured into the deal that protects both the buyer and seller?

4) If I were to find and structure a long term note with fixed monthly payments (ex: 20 years - principle and interest included), but half way through the deal (ex: at the end of year 10), I want to pay off the remainder of the principle balance. Am I likely obligated to also pay off the "would be" interest for the remaining 10 years of the note or just the principle balance?  

Thanks to everyone who contributes to this post with their invaluable guidance and looking forward to collaborating!

Sebastian

@Jesse Stahl great job on finding this deal and finding someone who is willing to take on a 30 yr note. If any opportunity such as yours presents itself to me, I will also make sure to find a way to make it work and make it a win-win for both sides. Let me know how it turns out and best of luck! 

@William Collins this is great insight. I was also recently approached about a potential opportunity for seller financing, but did not move forward with the deal. Typically speaking, how short are notes in seller financing? Between 1 -5 years? How uncommon is it to have little or no money for a down payment? 

@Joel S. I am also predominately focused on the midwest, but I have been keeping a close eye on the TX market, specifically San Antonio. Would love to connect directly and review some your properties that you are considering for seller financing. Please let me know if you are interested and would be willing to share any of the specifics of a potential deal.

@Mike Mefferd I recently closed on a townhome in which the seller was inquiring me if I would be interested in seller financing. While I knew what seller financing was generally, I went ahead with conventional financing to play it safe. With that being said, I have since done research of seller financing and believe it could be a good option going forward, if the right opportunity presents itself. Would you mind sharing with me the details of the 4plex deal and how you came up with this deal? Did you feel that it was a good negotiation in which you had leverage or did the seller dictate a lot of the terms? Any and all information would be greatly appreciated, thanks! 

@John Horner thanks for the note. The SFHs would be for rental properties!

Hello BP members!

I wanted to know if anyone can recommend real estate agents in Columbus,OH that focus specifically on helping clients find single family homes? 

Thank you!