Not sure I understand the question. Owner financing just means the owner is acting as the bank. So you would pay them whatever interest rate you negotiated.
Closing costs are typical minimal but there would be some.
exactly right, other than the costs with working with a title company for the tenants to pay the monthly payments too(just to make sure you get your money)and the costs with possibly using a RE lawyer to draw up paperwork if you don't already have contracts readily available too you, there is no cost to you, the owner of the property, carrying back the note.
__________________
- The Copy Ninja
CEO
Cash Flow Financial Solutions, LLC
a subsidiary of Halo Enterprise Inc.
"Make a distinction between being interested and being committed. When you are interested in doing something, you do it only when it’s convenient. When you are committed you follow through – no matter what – no excuses. – Mike Krzyzewski , Duke Blue Devils
Thanks for the help guys. Mark i should have been more clearer on what I was asking. I wanted to hear rough estimates on title co, REA costs . I assume I would need an REA? Or do I just need a title co to file the paper work. There is no mortgage on the house so i don't know if that changes things.
since there is no mortgage on the house then that makes things easier for you because you won't have to worry about the position of the note. With you creating a note with your buyer, that "note" is now the new mortgage on the home at which the buyer will paying you instead of the bank.
I know from personal experience, depending on if you are the buyer or seller, services can range from $250-$2000. So you can always build that into the sales price. But here is some information I found on lendingtree.com:
- Review the binder and review or prepare the purchase and sale agreement, including negotiating its terms.
- Prepare the deed and power of attorney if necessary.
- Deal with title issues as they arise and help correct them.
- Attend the closing and review all the papers you will be required to sign.
- Arrange for transfer of security deposits.
- Arrange for insurance certificates if needed.
How much does this all cost? Typically, legal fees are higher when you buy than sell because the role of the buyer’s lawyer is more extensive. Most fees range from $500 to $1,500 for an average home whether you’re the buyer or the seller.
Some lawyers charge a flat fee for specific services and others bill by the hour. If you are paying by the hour, make sure you understand what the final cost is likely to be and insist on a regular accounting for charges. Usually, a lawyer can easily estimate costs related to a real estate transaction and his or her fees will only go higher if something goes wrong. Remember, even if your deal does not close, you’ll still owe your lawyer for his or her time."
As far Title Companies, usually the costs are a percentage of the sales price.
But just call up your local REA and Title Co. and get some estimates. Shop around its fun!
Your Resident Ninja,
Kris
__________________
- The Copy Ninja
CEO
Cash Flow Financial Solutions, LLC
a subsidiary of Halo Enterprise Inc.
"Make a distinction between being interested and being committed. When you are interested in doing something, you do it only when it’s convenient. When you are committed you follow through – no matter what – no excuses. – Mike Krzyzewski , Duke Blue Devils
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Not sure I understand the question. Owner financing just means the owner is acting as the bank. So you would pay them whatever interest rate you negotiated.
Closing costs are typical minimal but there would be some.
exactly right, other than the costs with working with a title company for the tenants to pay the monthly payments too(just to make sure you get your money)and the costs with possibly using a RE lawyer to draw up paperwork if you don't already have contracts readily available too you, there is no cost to you, the owner of the property, carrying back the note.
- The Copy Ninja
CEO
Cash Flow Financial Solutions, LLC
a subsidiary of Halo Enterprise Inc.
"Make a distinction between being interested and being committed. When you are interested in doing something, you do it only when it’s convenient. When you are committed you follow through – no matter what – no excuses. – Mike Krzyzewski , Duke Blue Devils
Thanks for the help guys. Mark i should have been more clearer on what I was asking. I wanted to hear rough estimates on title co, REA costs . I assume I would need an REA? Or do I just need a title co to file the paper work. There is no mortgage on the house so i don't know if that changes things.
since there is no mortgage on the house then that makes things easier for you because you won't have to worry about the position of the note. With you creating a note with your buyer, that "note" is now the new mortgage on the home at which the buyer will paying you instead of the bank.
I know from personal experience, depending on if you are the buyer or seller, services can range from $250-$2000. So you can always build that into the sales price. But here is some information I found on lendingtree.com:
(http://www.lendingtree.com/real-estate/advice/finding-a-realtor/what-do-...)
"If you’re selling a home, your lawyer should:
- Review the binder and review or prepare the purchase and sale agreement, including negotiating its terms.
- Prepare the deed and power of attorney if necessary.
- Deal with title issues as they arise and help correct them.
- Attend the closing and review all the papers you will be required to sign.
- Arrange for transfer of security deposits.
- Arrange for insurance certificates if needed.
How much does this all cost? Typically, legal fees are higher when you buy than sell because the role of the buyer’s lawyer is more extensive. Most fees range from $500 to $1,500 for an average home whether you’re the buyer or the seller.
Some lawyers charge a flat fee for specific services and others bill by the hour. If you are paying by the hour, make sure you understand what the final cost is likely to be and insist on a regular accounting for charges. Usually, a lawyer can easily estimate costs related to a real estate transaction and his or her fees will only go higher if something goes wrong. Remember, even if your deal does not close, you’ll still owe your lawyer for his or her time."
As far Title Companies, usually the costs are a percentage of the sales price.
But just call up your local REA and Title Co. and get some estimates. Shop around its fun!
Your Resident Ninja,
Kris
- The Copy Ninja
CEO
Cash Flow Financial Solutions, LLC
a subsidiary of Halo Enterprise Inc.
"Make a distinction between being interested and being committed. When you are interested in doing something, you do it only when it’s convenient. When you are committed you follow through – no matter what – no excuses. – Mike Krzyzewski , Duke Blue Devils