Seeking Advice from People Experienced In Sellers Financing

[Erin Sarocco]

Hi all, 

I have had my eyes on a property in Boise for a few months now, it has been on the market for quite some time and definitely has its quirks. I really think I can make a seller financing deal work but my agent does not seem to agree... she claims that a seller finance deal will not work unless I have 40-50% down and offering above market interest rates. This is very different that what I am seeing and learning online about sellers financing. I feel like ever since I have started my real estate journey, I keep hearing the phrase "You don't need cash to buy a house!" - especially from that Pace Morby dude. This seems absolutely opposite of the case. Does someone have insight here? For those interested in helping more - here is a breakdown of the deal:

Asking: $798,000

My agent has estimated it is worth closer to $675,000-$700,000

This is an estate situation, they own the home outright and have some renters so are cash flowing a bit. They seem to not be in a hurry to sell and have kept it on the market and rejected 4 lower offers - obviously looking for their premium price. The son (1/2 owner) has expressed wanting his money upfront and told his agent it's a no to seller financing. However, I hear that a lot of seller financing negotiating is also educating sellers on options. I would want to propose a 2 year term balloon payment situation that would allow the family to clear out of their estate situation and walk away with a net that is closer to asking than anyone could have offered. The caveat here is I would require low interest rates and 0-7% down on my end - it is all I am able to make work to get them closer to what they are asking for. 

[Chris Seveney]

Quote from @Erin Sarocco:

Hi all, 

I have had my eyes on a property in Boise for a few months now, it has been on the market for quite some time and definitely has its quirks. I really think I can make a seller financing deal work but my agent does not seem to agree... she claims that a seller finance deal will not work unless I have 40-50% down and offering above market interest rates. This is very different that what I am seeing and learning online about sellers financing. I feel like ever since I have started my real estate journey, I keep hearing the phrase "You don't need cash to buy a house!" - especially from that Pace Morby dude. This seems absolutely opposite of the case. Does someone have insight here? For those interested in helping more - here is a breakdown of the deal:

Asking: $798,000

My agent has estimated it is worth closer to $675,000-$700,000

This is an estate situation, they own the home outright and have some renters so are cash flowing a bit. They seem to not be in a hurry to sell and have kept it on the market and rejected 4 lower offers - obviously looking for their premium price. The son (1/2 owner) has expressed wanting his money upfront and told his agent it's a no to seller financing. However, I hear that a lot of seller financing negotiating is also educating sellers on options. I would want to propose a 2 year term balloon payment situation that would allow the family to clear out of their estate situation and walk away with a net that is closer to asking than anyone could have offered. The caveat here is I would require low interest rates and 0-7% down on my end - it is all I am able to make work to get them closer to what they are asking for. 

 Remember the people saying it online are typically also the ones trying to get you to buy a $10,000 training course and that it sounds very easy, which is furthest from the truth. Can there be deals found seller financing with below market rates, yes. Here is a good video which I would say highlights more the reality of creative financing:

While I would not call it a scam, I think it discusses reality vs. perception of what is being sold. 

The Scam of Subject-To Real Estate & "Creativity Financing" Deals. - YouTube