Selling with Owner Financing - Posted by Stan


#1

Posted by SCook85 on December 17, 1998 at 20:58:53:

Doris,
Every title company should have an attorney in their office. These are the attorneys that I refer to as settlement attorneys. The documents that are prepared and reviewed for settlement purposes are reviewed by an attorney and every office that I know of has an attorney in it. I prefer dealing with the small independent title companies. These attorneys tend to have more experience dealing with investors and also have access to hard money (which I always advise is a good source for fiding money to do deals).

SCook85


#2

Selling with Owner Financing - Posted by Stan

Posted by Stan on December 16, 1998 at 21:57:00:

I’m a new investor looking to buy houses from motivated sellers and flipping them to buyers with owner financing. I would like to (1) get a down payment from the buyers, (2) create & sell the 1st mortgage to a note buyer and (3) keep a 2nd. My goal is to create some immediate income and a monthly cash flow. Has anyone tried this strategy? I would appreciate any thoughts or comments.

Thanks…Stan


#3

Re: Selling with Owner Financing - Posted by Bud Branstetter

Posted by Bud Branstetter on December 17, 1998 at 10:56:42:

You describe your concept as flipping. Conventional flipping is more directed to the wholesale side. What you must do to flip retail is find a property that doesn’t need any work less that 80% of value. This is because that is all the note buyer will invest in a property. In most markets there is a sellers market. Nice house without work are difficult to find at 80% or less. What you can find are the situations that there is deferred maintenance along with the motivated seller. Then if you can acquire and fix at no more 80% the new note can be sold. You get the some of the downpayment and the second. What you will find is that in todays market the prospective buyer can get a 90% or better loan the majority of time through a C/D mortgage broker. If their credit is such that you can not go through the mortgage broker then a note may work.


#4

Re: Selling with Owner Financing - Posted by SCook85

Posted by SCook85 on December 16, 1998 at 22:47:41:

Stan,
yes I have done a couple of these. It is not easy to pull off, there are lots of mistakes that you can make and many factors that can delay the deal. I wouldn’t discourage you from doing it, but i would recommend trying some all cash wholesale flips first. They are difficult enough when getting started, throwing in the note transaction is a whole other deal that takes a lot of work just to get done.
As far as tips go, the first thing I would recommend is to find a good settlement attorney that REALLY understands what you are doing. Many of them don’t have a clue and can’t grasp the concept. A good attorney can make the deals happen for you once you have the buyer in place.
Good luck!

SCook85


#5

Re: Selling with Owner Financing - Posted by Doris - Va.

Posted by Doris - Va. on December 17, 1998 at 16:04:06:

What is the difference between a settlement attorney and a title company? Don’t they both provide the closing documents and set up closings for both regular deals and investor deals? Actually I never heard of a title company (except for title searches etc.) doing closings until a couple years ago. Someone told me about this friend who worked in an attorney’s office as an independent closer for real estate deals. Now - since I have been studying r.e.investing and reading this site I have learned about using a title company for closings. Does this mean no attorney is necessary? Or - does it vary in different states? Doris = Va.


#6

Re: Selling with Owner Financing - Posted by Doris - Va.

Posted by Doris - Va. on December 17, 1998 at 15:11:53:

What is the difference between a settlement attorney and a title company? Don’t they both provide the closing documents and set up closings for both regular deals and investor deals? Actually I never heard of a title company (except for title searches etc.) doing closings until a couple years ago. Someone told me about this friend who worked in an attorney’s office as an independent closer for real estate deals. Now - since I have been studying r.e.investing and reading this site I have learned about using a title company for closings. Does this mean no attorney is necessary? Or - does it vary in different states? Doris = Va.