I found an owner who is willing to owner finance their property. Trouble is both of us are clueless as to what steps we need to take to make this happen. I am a new investor and have never purchased a property this way. What documents do I need? What steps do we take from start to finish? Help!!!
I am assuming the property is located in Texas. The only documents needed are:
Warranty deed with vendors lien
Real estate lien note
Deed of trust
Deed is signed by the seller and note and deed of trust are signed by the buyer. The deed and deed of trust are to be notarized and recorded at the county court house where the property is located. You can do them yourself or hire and attorney. You should first have the title company run a title search to make sure there are no other liens or judgements and that the seller actually ownes the property.
Contact me and I would be glad to help you do the documents.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
tedstokely@austin.rr.com
Thanks for the fast response. I love this site…I forgot to add that the seller owns the property free and clear. How much does this change, documentation wise.
Makes it easier. No sub2 or lender to worry about. Seller financing is the easiest way to purchase deals and sometimes you can get some equity too. Still verify it is free and clear with the title company. Should get seller to pay for the title search. Usually the seller pays for the deed and the buyer for the deed of trust and note. All this is negotiable however.
Ted Jr
Other ways to do an owner financing deal is:
- Contract for deed.
- Wrap around mortgage.
Contract for deeds have gotten bad rap in the past several years. Most investors are not using today at all. A wrap is only used when there is existing financing. This seller owns the property free and clear.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 7873