Purchasing muti-family's through owner financing with no down payment? What other terms are typ?

What are other typical or common conditions that I can expect when using owner financing. Interest rate, loan term, transfer of the deed etc...
In Buying Property - Asked by Jim H. - Jul 7, 2010
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Answer(s)

Ben R.
Lender/Mortgage Broker
Riverview, FL

My best advise to you would be to consult with an experience commercial R.E. attorney that is used to putting these kinds of deals together and can advise you on common rates, terms and conditions. Google commercial real estate attorneys in the area of property in question then ask attorney about there experience in this area. Trust me when I say the attorney fee will be well worth it. You can even enroll with a retainer service like pre-paid legal and get a significant discount on this service. Hope this helps and good luck

Jul 7, 2010
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Tyler J.
Broker/Agent
Portland, OR

I agree with Ben R in regards to getting an attorney to advise you as each state will have different laws to be aware of. You should contact a title company and ask for a copy of their standard all inclusive trust deed form. Typically a 2 page form which will cover the basics, but just the basics. If you are the seller of the property be advised that there is a lot more risks to consider should the buyer/borrower default. In the end it is always best to seek the advice of an attorney for these deals.

Jul 8, 2010
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Nathan B.
Broker/Agent
Seattle, WA

Definitely consult a "real estate attorney." Depending on the state you are in you could also have an escrow company close the transaction for you for a cheaper fee. I'd require the seller provide title insurance. Most title companies double as escrow companies, but escrow is a neutral 3rd party so I'd consult an attorney to write the purchase and sale agreement up or a real estate agent and then have escrow close the sale.
Interest rate & loan term are negotiable and you can consult a lender to compare. I'd order an appraisal too. There is less hassle and a lot of fees you'd normally pay a bank that you'd save on. You'll typically save on loan fees (points), get a lower interest rate and not have to worry about debt-to-income or credit issues. If you default the seller usually automatically takes the property back through non-judicial foreclosure.

Jul 12, 2010
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