Wholesaling Seller-Financed Deals in Florida

The short answer

Can you wholesale a seller-financed deal in Florida?

Yes, you can assign a contract that includes seller financing terms, with written disclosure to the seller. The note and mortgage should be prepared by an attorney or title company.

In seller financing, the seller acts as the bank. The buyer signs a promissory note and a mortgage to the seller, and makes payments over time. Your contract sets the price, down payment, rate and term, and your buyer steps into those terms. Our seller financing guide and contract guide explain the structure.

Florida taxes and rules apply to the loan, not just the deed. Documentary stamp tax is due on the promissory note, and a nonrecurring intangible tax is due on the recorded mortgage. Florida’s usury law caps interest rates, and federal and state lending rules can apply when the buyer will live in the home. Get advice before you set terms. Our balloon payment guide covers common term structures.

The opportunity

Why seller-financed deals work in Florida

Florida has many owners with paid-off homes, especially retirees. Monthly income with a secured note appeals to them, and buyers will pay more for flexible terms. In horse country around Ocala and in rural counties, owner financing is already a familiar way to sell land and homes, so sellers there are often open to it. Retirees also like that a note secured by their old home is something they understand, compared with stocks or bonds. Show them a simple payment schedule so they can see exactly what they will receive each month.

Lead sources

Where to find seller-financed leads in Florida

• Free-and-clear owners. Property appraiser and lien data show homes with no mortgage.
• Long-term owners. Owners who bought decades ago often have no loan.
• Land sellers. Many Florida land sales already use owner financing.
• Tired landlords. Landlords may prefer note income over managing tenants. See our installment sale guide.
• FSBO listings. Some owners advertise that they will carry financing.

Your exit

Who buys seller-financed deals in Florida

Landlords who want low down payments and investors who struggle with bank loans are common buyers. The terms matter as much as the price.

Use a third-party servicer to collect payments and send statements. That protects the seller and builds trust, and it gives your buyer a clean payment history if they later refinance or sell the note. Our note investing guide explains how notes can later be sold.

Step by step

How to start wholesaling seller-financed deals in Florida

1. Learn the seller’s goals. Ask about income needs, down payment and timeline.
2. Set the terms. Agree on price, down payment, rate, term and any balloon.
3. Check the rules. Review usury limits and lending rules with an attorney.
4. Run the numbers. Use the ARV calculator and the MAO calculator alongside the payment.
5. Sign and disclose. Sign the contract with terms and disclose that you may assign.
6. Prepare the note. Have the note and mortgage drafted properly.
7. Close through title. Close with an investor-friendly title company and set up servicing.

An Ocala retiree owned a paid-off rental and wanted steady income without being a landlord. A bank sale would have triggered a big tax bill in one year.

You agreed on $240,000 with $30,000 down and the seller carrying the rest at 7%, with a balloon in year 7. An attorney prepared the note and mortgage, and you disclosed your intent to assign.

A landlord paid a $14,000 assignment fee and took over the terms. A loan servicer now sends the retiree about $1,480 each month.

Florida rules to know

Taxes on notes, usury and lending rules

Florida charges documentary stamp tax on promissory notes and a nonrecurring intangible tax on recorded mortgages, in addition to doc stamps on the deed. Florida’s usury law limits interest rates on most loans, with criminal penalties for very high rates. Keep your rate well within the limits, and put the rate, term and any balloon date clearly in writing for the seller.

When the buyer will live in the home, federal ability-to-repay rules and Florida’s loan originator laws can apply to sellers who finance. Exemptions exist for some sellers, but they have conditions. Get advice from a Florida attorney before you set terms. See our attorney guide.

Learn it with a mentor

Structure terms that work

Seller financing deals live in the details. Mentorship students send us their term sheets, and we help them structure deals that protect everyone.

FAQ

Seller-Financed Deals in Florida: common questions

Keep going

More Florida wholesaling guides

Read the full Florida wholesaling guide or pick another situation below.

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