Posted by Stan on May 09, 2007 at 12:39:59:
Just a standard purchase contract. We can tell you how to make the offer (well, limited that is(. You are going determine what will work for you. For instance, the most important item, if they are going to finance it for you is going to be the terms. This isnt the only important item, but I think is the most important. The terms make up the structure of the deal. They may include (but not limited to) purchase price, down payment, interest, payment frequency, payment penalties (ie, no payments, prepayment, etc), balloon payments (if any). You need to decide what terms you can live with and present it to the owner. He will either agree, or disagree. Pretty simple. When you both sign off on it, you have a signed contract that you will need to close on. This, I would take to your attorney. Come up with the terms you can live and make money with and you are almost home.
Approaching a seller regarding financing. - Posted by Aj
Posted by Aj on May 01, 2007 at 17:09:46:
Ok I want to buy this vacant land from a seller for $30,000. He said he is willing to offer financing. There is no mortgage on the property. What type of financing is the best for this: subject to or lease option? I have limted funds to put down for a down payment. Any suggestions???
Re: Approaching a seller regarding financing. - Posted by Aj
Posted by Aj on May 09, 2007 at 12:44:42:
The seller said he wants to use a contract for deed agreement, anyone have any experience if this is a good idea or no.
Re: Approaching a seller regarding financing. - Posted by Toby Lee Tenenbaum
Posted by Toby Lee Tenenbaum on May 01, 2007 at 17:57:51:
There is no mortgage on the property so you cannot finance “subject to” the existing mortgage.
Lease option refers to renting (leasing) the property with an option to buy it at a predetermined price. It’s not a way to finance.
Is the seller willing to owner finance, ie, do a note and mortgage?
Re: Approaching a seller regarding financing. - Posted by Aj
Posted by Aj on May 01, 2007 at 20:23:08:
They are willing to assist in financing, Can you give me an idea of what to propose? Anyone?
Re: Approaching a seller regarding financing. - Posted by Dave
Posted by Dave on May 02, 2007 at 14:03:25:
Have him do a land installment contract. You pay monthly installment payments until paid off. You dont need bank financing he already owns it. If he wont owner finance it dont waste your time with an unmotivated seller.
Re: Approaching a seller regarding financing. - Posted by Aj
Posted by Aj on May 02, 2007 at 16:49:17:
He said he would owner finance it, but I am new to putting the deal together. What type of contract do I present to him, a multiboard 3.0 is what I have used. (illinois if this matters)