OfflineThis is a seller financing deal that I did several months ago. I will go through the structure to help people understand how it works. The sales price was $105,000. They put $20,000 down and the term is 1.5 years due on or before (meaning they can pay the balance off any time before it is due), with an interest rate of 10%. At closing the title was transferred to the new owner, and the payments were set up through an escrow company that takes in the payment, sends the mortgage payment to the bank and sends me what ever is left. The closing costs were just over $1,000 and it went through a title company, and I paid my agent 3% commision from the down payment. All in all it was a pretty simple transaction.
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Thanks for sharing the example of seller financing with us. The more we understand about real estate the more options we may have for future deals. Believe and Achieve!
- Joe
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Thanks for sharing....it will help me in my future real estate deals with seller financing option.
I have a few sellers that want to carry a note back for the downpayment so they can sell ther property to me.
How do I work this out with the bank i'm getting the loan from? How do I show them I have the 20% downpayment? How does the money change hands at closing? Does the seller give me the money and then I bring it to the table at closing? (I don't think he would) but I need details about how this is going to work. Please do not just say the seller will hold a note for my downpayment. I need details on how to make this work and what to say to the bank and how the money changes hands and when the money changes hands. This is a really big deal to me right now. Here is my e-mail sfshelton@fuse.net if someone could send mke info about how this works. I been trying to get the details of this for some time now. I'm from the Cincinnati Ohio area. I have alot of sellers that want to sell apartments and will hold a note for me but I need to find out how to make this work so the seller is happy, the bank is happy and I'm happy.
Thank you
Steve Shelton