Owner Finance Con

OWNER FINANCE CONTRACT
(OFC)
RC SYSTEM STANDARD TERMS
1. SELLER: _______________Trust (Wholeseller) and/or Assigns
BUYER: _____________________________________________
2. PROPERTY ADDRESS:
3. DISCLOSURE: The Wholeseller will assign this contract to an Investor (Seller) that will obtain
an Investor loan to buy the property. The Buyer understands that when the Investor resells the
home to the Buyer that the Investors note and interest rate will be less than the Buyers note and
interest rate. This contract is subject to the Investor successfully acquiring the property with the
Purchase Contract as detailed in the Buy Sell Agreement, which is a part of this contract.
4.
INVESTORS PURCHASE CONTRACT PRICE

$
BUYERS DOWN PAYMENT WITHOUT CC
$
= BALANCE
$
+ 15% INVESTOR PROFIT
$
BUYERS NOTE AMOUNT
$
5. INVESTORS CLOSING COSTS: All costs to acquire the home are documented on the
Investors closing statement which will be provided to the Buyer. The formula to calculate exact
closing costs is:
All Monies Out Down Payment = Closing Costs. Buyer to reimburse the Investors exact closing
costs.
*If Investor purchases property all cash, lender fees saved will be accessed as a 2% admin fee.
6. BUYERS NOTE TERMS: 30 years, ___ years; 20% Down; ___% Down;
10.9% Fixed; ____% Fixed No Prepayment Penalty, No Balloon
7. MONTHLY PAYMENT: P&I $

Note Servicing $35
Est. Taxes $
Estimated Total Payment: $
Est. Ins. $
Est. PMI $
8. APPRAISAL: Buyer to pay the appraisal fee directly to the Seller (Investor) ASAP. If the property does not
appraise at or above the purchase price, the Buyer may either cancel the contract and receive a release of
Earnest Money; renegotiate the price, or increase their down payment.
9. HAZARD INSURANCE: Investor obtains a hazard insurance binder from the Insurance
Company recommended by the Wholeseller ASAP. When the investor owner finances the property
to the home buyer they will simultaneously cancel their policy and have a homeowner hazard
insurance policy written naming the Buyer as the owner and naming the underlying lender and
the investor as mortgagees.
10. INVESTOR CLOSING DATE: Closing will be on or before 45 days of contract date. If an
extension of time to close is needed, Wholeseller will notify Home Buyer.
11. MOVE-IN: The Home Buyer will make moving arrangements AFTER the Investor has CLOSED
and the lender has funded the transaction and keys have been provided & NOT BEFORE. A
temporary lease will be provided to facilitate allowing the Buyer to turn on utilities until the Buyer
has a recorded warranty deed in hand.
RC System Owner Finance Contract | 2 pages | Copyright 2016 | All rights reserved. Reproduction in any form without the express
consent of the Owner is prohibited | www.Wholesellers.net | Updated 9/22/16 | 713-518-2716 | customerservice@Wholesellers.net

(OFC)
12. BUYERS CLOSING (2nd Closing): The
Buyer will close within 7 days after the Investor closes.
Total closing costs which cover the Promissory Note, a Warranty Deed in Buyers name, a Deed of
Trust, escrow cost, doc. prep, recording costs & note servicing set up costs etc. will not exceed
$1,000 maximum.
13. PROPERTY CONDITION: The Buyer represents they have seen the underlying Sellers
Disclosure Statement from the current owner and initialed it. The Buyer understands that the
Wholeseller and the Investor are unfamiliar with the property, have never seen the property and
are not providing a warranty of any kind. The Buyer has had the property inspected and is
satisfied with the condition. The Buyer will purchase their own Home Warranty and holds the
Wholeseller and the Investor harmless of any claims concerning condition of the property.
14. MONIES PAID BY BUYER: Buyer has paid RCS their initial training fee of: $1,500.
Buyer to pay the balance of the RCS Training fee of $1,500 at closing.
Buyer paid $_______ to Wholeseller to make the offer. Funds apply toward purchase.
Buyer paid $_______ option fee directly to Seller Funds apply toward purchase.
Buyer paid $_______ for appraisal directly to Investor Funds do not apply toward purchase.
15. EARNEST MONEY: Buyer will deliver a cashiers check for 10% of the purchase price as Earnest
Money to:
_______________________________________________________________________________________________
Bellaire Title Services 5909 W. Loop South, #490 Bellaire, TX 77401 Lisa Martin 713-375-2900
lisa@warrenkinglaw.com
*Buyer must put their name & the address of the property on each check and include
a copy of this
contract when funds are delivered to the closer. Time is of the essence.
Earnest Money Deposit # 1 will be made in the amount of: $__________ on or before
/
/
2016.
The balance of the earnest money must be deposited approximately one week prior to the
Investor closing.
If all money due is not paid then Buyer is in default. See Default provisions in #16.
16. DEFAULT: If the Seller does not perform, the Buyer will receive a refund of all earnest money
paid which will release all parties from this contract. If the Buyer defaults, Wholeseller may
terminate this owner finance contract and keep the earnest money and/or seek specific
performance and any other damages for nonperformance.
17. DISBURSEMENT OF EARNEST MONEY: Buyer agrees that all earnest money funds are
to be disbursed immediately upon closing and funding of the Investors Purchase Contract in
any manner directed by the Wholesaler. This exclusive authority shall not be assigned.
18. NOTE SERVICING: Buyer agrees to use a 3rd party note servicing company August REI, LLC (972)
767-9219 and pay a $50 setup fee. Contact: Consuelo Moore. Buyer may pay by personal check or ACH
until such time as an NSF return is received after which time only certified funds (i.e. bank cashiers
check or money order) will be accepted. Buyers first payment date to be 15 days in advance of
Investors first payment date. On day 11 after the due date the late fee is 5% of the P&I.

(OFC)
19. REPRESENTATIONS:
The
parties
understand, acknowledge and agree that neither the Wholeseller or the Investor that is assigned
this contract is a licensed real estate broker or a mortgage broker.
20. SPECIAL PROVISIONS:
Buyer: _________________________
Seller : ______________, Trustee
Date:
2016
Cell:
Wholesaler
SS#
D.O.B.
Buyer: _________________________

Owner Finance Con

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OWNER FINANCE CONTRACT

INVESTORS PURCHASE CONTRACT PRICE

7. MONTHLY PAYMENT: P&I $

OWNER FINANCE CONTRACT

OWNER FINANCE CONTRACT

20. SPECIAL PROVISIONS:

Seller : ______________, Trustee

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