For sale by owner contract - Posted by Michael Lewis

Posted by charley on June 22, 2000 at 07:10:06:

you may want to ask a local realtor for your state’s “purchase and sale agreement” that all realtors use. you then would have to white-out the agency’s name through out and add an addendum which outlines the owner financing arangements. if you can’t find a realtor willing to give you this (they should if you have a relationship with them or if they understand that as an investor you probably will dance with the one who brought you), you can call a good real estate attorney to write one up for you. my attorney charges me $125/hour (it should take 1 hour) for this type of work, but he only has to do it once; you’ll have a generic agreement that you can add addendums to. i know that $125 is $125, but in the long run it’s money well spent. first of all - try a realtor, because you can’t beat free!!! hope this helps.

ps. by the way, as a rule people feel safer about using a standard “purchase and sale agreement” that all realtors are using in your state.

charley

For sale by owner contract - Posted by Michael Lewis

Posted by Michael Lewis on June 21, 2000 at 13:17:27:

Can anyone out there help me with an example of a owner financed contract? I have found a great deal on a house but have no idea on how to structure the FSBO/owner fin. She did tell me she would like the balance(ballon)payment twelve(12)months from signing. Any help,sample’s or past experience is greatly appriciated. Thanks in advance
Mike

Re: For sale by owner contract - Posted by Jeff-FL

Posted by Jeff-FL on June 23, 2000 at 21:00:32:

Michael,

Most of the gurus on this site will tell you that you do not want a balloon note which is due in 12 months. In fact, one of them calls it something akin to a “neutron bomb,” ie., it goes off and blows away all the people and leaves the property intact.

Unless you are very certain as to how you will pay off this note in 12 months, (assuming it is a significant amount of money), you should RUN, not walk to the nearest exit.

Good balloon strategy, is to have it come due in about five years or so. Anything less, and you’re moving onto thin ice.

Good Luck,
Jeff-FL

You can also buy a boilerplate purchase and sale agreement at Office Max for about $6 (NT) - Posted by Anne-ND

Posted by Anne-ND on June 22, 2000 at 15:08:03:

nt

IMHO, go to a Title Company and get the forms… - Posted by Stew(NE)

Posted by Stew(NE) on June 22, 2000 at 13:14:41:

Don’t let a realtor know anything about your deal. The title company can give you the forms and they can do everything once you have a contract. Once you have agreed to agree, write what you have down in plain english and go to the title company. They can help you complete the purchase agreement. Now this is key: They CANNOT negotiate anything. You must have all the basic questions answered like…

Sale Price
Closing Date
Any subject to’s
Earnest Money
Tax Escrow
How much of the closing cost each of you will pay?

Good Luck