If you are owner financing real estate then you will know that there are strict laws on what you must provide. There are several ways to handle a contract or a mortgage and you should check with a local attorney before taking any advice from this website. We are not lawyers and can not suggest how you should handle your assets. There are several legal documents that are required in real estate and a real estate attorney can draw up all of the complicated documents for you to use. You may also want to get advice on how you want to finance the property. You can give a deed it at the closing, or have an "installment sales contract" or "Land Contract" drawn up as an alternative to granting a deed. This is sometimes used for risky buyers, or on a low initial down payment.
The tracking tool that you will need, following your closing, is an amortization schedule. This gives you a breakdown of your payment schedule and loan balance for the loan amount that you are owner financing. There are free Excel amortization downloads, such as the one offered by Vertex42.com, that can give you a pretty good idea of a payment schedule. If you are owner financing land or other real estate you must track the annual amount of interest that has been collected and the amount of principal that has been paid. This gets to be quite complicated when a payment is late or an extra principal payment is made. Try your own loan information and use this download as an illustration to see how close you can get. With online banking or a bank statement you should be able to calculate interest and principal that you have paid.
Take a look at our land for sale that may be eligible for owner financing.
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