Owner Finance Legal Help

Close seller-financed deals with clear legal support.

In this video:

What is an owner finance closing?
What are typical questions asked by buyers & sellers in an owner finance?

Owner Finance Closing Legal Services

There are a lot of benefits to owner financing. You can sell homes fast with owner financing, even if it’s not in perfect condition. By eliminating some of the struggles of purchasing a home with a traditional loan, you make your property more available to more buyers. There are a lot of benefits to an owner finance closing. First, you can avoid real estate agent commissions, and you can sell the home without lengthy option periods. You can choose to close when you want. A 7-day period is recommended to give the new buyer time to assess the property. You can really save a lot of time compared to going through a traditional lender. Another benefit is an investment strategy that works for you. If you would like to structure your payments over a period of time or receive a larger down payment, then it is up to you. Price: $1,000 (Setup an appointment here).

Safe & Compliant Owner-Financed Deals

What Can You Negotiate in an Owner Finance Closing?

There are three main items you can negotiate with an owner finance; cashflow, down payment, and interest.

First, what is your cashflow going to be each month? Can your buyer afford it? Is it comparable to the other homes in the area and the status of the home?

Second, is the down payment. You do not have to use the traditional percentage for a down payment; you can use more or less. Frequently, people renting a home will eventually transition to an owner finance with the same payments and a cash down payment. There are many reasons sellers will make this deal. As the landlord, the upkeep of the property is more trouble than it’s worth. The seller wants the down payment immediately. The seller structures the owner finance, so that the buyer is required to refinance the wrapped loan after 3-5 years or sell the home. Then they are guaranteed a home sale (cash out) without the trouble/costs of selling full retail. In this scenario, if the buyer fails to refinance, then the seller can structure penalties in the contract. These penalties include raising the interest rate, monthly payment, or getting the home back.

Third is interest. The ability to structure a loan with or without interest makes your investment work to your benefit.

The Upside, the Downside & the Opportunity

Owner finance eliminates or reduces hold time, vandalism/theft, seller contributions to buyer closing costs, and realtor commissions. Due to the percentage of buyers that do not qualify for a traditional mortgage, you will have ample opportunity to sell. Only 2-3% of homes on MLS are owner finance.

The escrow service you choose will do the accounting and work with you to make the payments on the underlying mortgage if there is one. Whether you choose to have the buyer refinance or require a large down payment, you can structure it however you choose with minimal restrictions.

There is always the option to foreclose on the new buyer if they are not making payments. If there is an underlying mortgage, this can put the original owner in a tough situation. You have to file in court to foreclose, and it is costly and time consuming. It is important to do your due diligence for qualified buyers, and we can help. We can also explain the cost and time it will take if you need to foreclose.

FAQ

How Do You Calculate Owner Financing?

How Much Are Closing Costs With Owner Financing?

One of the benefits of using owner financing instead of a traditional mortgage loan is that you’ll save on closing costs. That is because you won’t have to deal with any lender fees, such as application and origination fees, interest points, and more. Closing at Maas law firm you will have the standard amount for the owner financing, but you can avoid other closing costs if you decide to, write that into your contract.

Do You Have to Use a Real Estate Agent When Doing an Owner Finance?

Is Owner Financing Safe for the Buyer?

Is Owner Financing Safe for the Seller?

View Other Types of Investor Related Real Estate Transactions

Land Trust With Assignment of Beneficial Interests

Mobile Notary

Maas Law Firm, Texas Real Estate Attorney

We are a San Antonio Real Estate Law firm that offers fixed fee rates for a variety of legal transaction services, including Owner Finance & Wraparound Closings, Foreclosures, Deeds & Releases, Real Estate Contracts, Title Issues & Judgments, Wills & Estates, Probate & Administration, & LLC Formations. If you need help assessing your case give our office a call.

Victor has been doing real estate transactions as a lawyer since 2002 & as an investor himself since 2003. There are a lot of nuances with real estate & we hope that if you have any questions to contact us during regular business hours. Along with being a Real Estate Attorney, Victor is also a Real Estate Broker, making his expertise long standing & efficient.

What Our Clients Say

Victor is a mover & shaker in the Real Estate Investment business...I recommend him anytime.

JD GARZA

Victor has closed a bunch transactions for us. Very knowledgeable & efficient!

Michael Eronini

Mr. Maas is extremely professional & makes the process quick & painless. Thank you for helping me today. You're a blessing.

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