All Forum Posts by: Victoria E.

If you're selling a single-family home to an owner-occupant (I don't know if you are) – the "perfect" seller-financed note is 20% down, 10% interest, 10-year term. But that's a unicorn.

Why? There's a balance between what's good for the seller and what works for the buyer.

If the buyer can't afford the payments, they've been set up to fail. No one wants that.

In today's environment, try to set the interest floor at 7%... more of you can make it work. Avoid a 30-year term unless the payments aren't affordable otherwise. 15 - 20 years if you can. Minimum 10% down. I'm not a fan of balloons... but if there is one, I suggest 7 years or longer.

You can look at area comparable rents. Keeping your payment in the range of rents (allowing for expenses a homeowner will pay and a tenant doesn't) tends to keep owner-occupants on track.

Your attorney or an attorney-owned title company can create the docs and manage the closing. There's something called a "lender's title policy" you should ask them about and have your buyer pay for at closing.

After you close - use a loan servicer to collect payments. Your promissory note can require escrowing taxes and insurance. A loan servicer can collect this and make tax and insurance payments. Other benefits here also.

Finally... the best advice I can offer is to use a third-party underwriter. They'll take a loan app, pull credit, verify income, and verify the ability to repay. Your buyer can pay for it at closing.

Thank you Marco. I love the feedback provided. Do you know any third-party underwriters?

0 Votes

Atlanta, Georgia

Hello, I am seeking advice as I am new to seller financing. I want to understand how to structure the finance terms.

if for example the house is on the market for $200K

1. how much do i ask for down payment

2 going interest rate? should it be interest only

3. what fees should i charge

4. if i am using a loan servicing company how do i factor in the fees?

5. are there closing costs i need to have in mind

6. anything else I should add to the terms

I welcome the community's wisdom and insights.

2 Votes

Phoenix, Arizona

I am also following this thread. Do you get a loan servicing company or does the buyer pay you directly?

1 Vote

Cleveland, Ohio

Thank you everyone for the feedback

0 Votes

Phoenix, Arizona

I have a tenant who has moved out and i now have a judgement against. Any recommendations for lawyer or a reasonably priced debt collector to assist in collecting the debt ?

Any success stories with collecting by garnishing wages? or general success in collecting? what strategy did you use?

0 Votes

Phoenix, Arizona

Did this venture ever take off. I am interested

0 Votes

New York City, New York

I am looking to purchase an SRO building in New York. Financing among other things have been a challenge . Can any one refer a lender that can finance an SRO?

Has any one converted an SRO to a standard multi unit building?
For the experienced SRO owners I would appreciate the opportunity to connect, share and learn.

Thanks.

0 Votes

New York City, New York

@Kevin McGuire Thanks for the article. Can you share which lender you used? I am also considering an SRO.

0 Votes

@Roi Azoulay did you use a lender? do you mind referring. I am also looking at an SRO.

0 Votes

New York City, New York

Hello solar panelists,

I am very curious to see an update. Did you get the solar panels? I am in NY with a flat roof as well and now considering the pro's and cons as i look for companies that can install on a flat roof.

0 Votes

All Forum Posts by: Victoria E.

Victoria E. has started 4 posts and replied 20 times.

Post: Seller Financing Advice & Feedback

Post: Seeking advice on Seller finance terms

Post: Seller Financing Contract

Post: Past due debt for rent an damages

Post: Past due debt for rent an damages

Post: Landlords in Brooklyn: Let's share a part-time roaming "super"?

Post: Calling SRO owners

Post: High cashflow Lodging house, walkable beach community S of Boston

Post: Experience with a NYC SRO Building

Post: Adding Solar Panels on a House