Finding owner financed properties

[Jason Garrett]

After listening to podcast 527 which was amazing I would like to use Subject to and seller financing . What is the best tool to find owners information on homes that this may work with if the owner doesn't reside at the property. Contact by mail first or cold call? Appreciate your feedback in advance !

[Eliott Elias]

Right now is the perfect time to create seller financing situations. Sellers are back to earth, over listing and getting disappointed. All options are on the table. I’ve email 20 listings today about seller financing and 15 came back open to the idea. A few months ago I wouldn’t get a reply 

[Nathan Gesner]

Quote from @Jason Garrett:

After listening to podcast 527 which was amazing I would like to use Subject to and seller financing . What is the best tool to find owners information on homes that this may work with if the owner doesn't reside at the property. Contact by mail first or cold call? Appreciate your feedback in advance !

 I haven't heard the podcast and I don't know many people that successfully use Subject To. That seems to be a better option when the market is crashing.

Owner financing is great, but most owners won't accept it because they have no idea what the benefits are. I've done several and love it! My recommendation is that you really learn about how to structure these deals, how it benefits you and the Seller, etc. Know it inside and out. Then find properties you're interested in, write offers that include owner-financing terms, and you can clearly teach them the benefits. In my case, all of the Sellers initially rejected the idea of owner financing, but then they changed their mind and loved it.

[Kate Barry]

My strategy with owner financing is to look at properties that will have a very hard time passing an appraisal - 

Properties that are in disrepair, or have a huge amount of land - or multi families with tenants that need to be evicted are ones that you can target. In a seller's market like this you aren't going to find someone with a turn key SF that wants the hassle or the risk of owner financing because they can sell at a profit by going on the MLS and then be free and clear

Something else you want to look for are owners with a lot of properties in a large portfolio. Offer to purchase all or part of their portfolio and make sure to highlight to them that this is a great way for them to maintain their passive income while avoiding capital gains because they aren't selling it all off in one chunk, and then they don't have to do the actual maintenance and management anymore. 

You want to have your pitch lined up, down payment, terms fleshed out, and you definitely want to have a good attorney or Realtor on your team that can help bridge the gap between yourself and the owner.  Legitimizing yourself is key because owners many times have either been burned by owner financing before or have had really amateur investors approach them with it so they will be extremely cautious about it. 

Build a relationship with people first before pitching them - take them out to a nice dinner or invite them over to your home so that you can get to know each other.  People work with people they like as Brandon says all the time, and you need to build that layer of trust with an owner to broker a successful owner financed deal

Lastly start hosting a monthly meet up and invite all the owners personally that you want to do a deal with.  Make sure its held in a nice place and you have some snacks or a guest speaker.  Maybe even invite someone who has recently done an owner financed deal so that they can talk about their experience and how they did it.  It will attract folks that are legitimately interested so you can focus on them instead of spending a ton of time cold calling and direct mailing - which does work but you have to be prepared for the long game in that space.  1 year and 7,000 DMs later you might get one owner financed deal

[Eliott Elias]

Right now is the perfect time to create seller financing situations. Sellers are back to earth, over listing and getting disappointed. All options are on the table. I’ve email 20 listings today about seller financing and 15 came back open to the idea. A few months ago I wouldn’t get a reply 

[Steven Foster Wilson]

Quote from @Jason Garrett:

After listening to podcast 527 which was amazing I would like to use Subject to and seller financing . What is the best tool to find owners information on homes that this may work with if the owner doesn't reside at the property. Contact by mail first or cold call? Appreciate your feedback in advance !

 I find cold calling is the best way to do this or networking events.  A lot of times you have to build that relationship and the trust. The more you do that the more opportunity you have. 

[Jason Garrett]

Quote from @Kate Barry:

My strategy with owner financing is to look at properties that will have a very hard time passing an appraisal - 

Properties that are in disrepair, or have a huge amount of land - or multi families with tenants that need to be evicted are ones that you can target. In a seller's market like this you aren't going to find someone with a turn key SF that wants the hassle or the risk of owner financing because they can sell at a profit by going on the MLS and then be free and clear

Something else you want to look for are owners with a lot of properties in a large portfolio. Offer to purchase all or part of their portfolio and make sure to highlight to them that this is a great way for them to maintain their passive income while avoiding capital gains because they aren't selling it all off in one chunk, and then they don't have to do the actual maintenance and management anymore. 

You want to have your pitch lined up, down payment, terms fleshed out, and you definitely want to have a good attorney or Realtor on your team that can help bridge the gap between yourself and the owner.  Legitimizing yourself is key because owners many times have either been burned by owner financing before or have had really amateur investors approach them with it so they will be extremely cautious about it. 

Build a relationship with people first before pitching them - take them out to a nice dinner or invite them over to your home so that you can get to know each other.  People work with people they like as Brandon says all the time, and you need to build that layer of trust with an owner to broker a successful owner financed deal

Lastly start hosting a monthly meet up and invite all the owners personally that you want to do a deal with.  Make sure its held in a nice place and you have some snacks or a guest speaker.  Maybe even invite someone who has recently done an owner financed deal so that they can talk about their experience and how they did it.  It will attract folks that are legitimately interested so you can focus on them instead of spending a ton of time cold calling and direct mailing - which does work but you have to be prepared for the long game in that space.  1 year and 7,000 DMs later you might get one owner financed deal

Very insightful! Thank you all. This platform is great for motivated newbies like myself .

[Jason Garrett]

Quote from @Eliott Elias:

Right now is the perfect time to create seller financing situations. Sellers are back to earth, over listing and getting disappointed. All options are on the table. I’ve email 20 listings today about seller financing and 15 came back open to the idea. A few months ago I wouldn’t get a reply 

Could you provide an example of a concise email that's effective.  I appreciate your knowledge.

[Wale Lawal]

@Jason Garrett

Finding seller financed homes can also be a challenge. As mentioned, not many property sellers are willing to finance the property themselves. Therefore, investors have to get somewhat creative to find these properties to improve their chances. Below are some top tips on how to find owner financed properties for sale.

1. Real Estate Listing Websites
2. Hire a Real Estate Agent
3. Check a Public MLS Website
4. Locate For Sale By Owner (FSBO) Homes
5. Find “For Rent” Signs
6. Check Eviction Records
7. Network

Owner financed homes are a great financing option for credit challenged real estate investors. Owner financed financing also offers several advantages that you can’t get from conventional mortgage lenders. Therefore, don’t let tight credit stop you from investing in real estate. If you follow this guide on how to find owner financed homes, you can still achieve your investment goals. To have a smooth transaction and avoid some of the common pitfalls of owner financing, it’s always prudent to hire a qualified real estate attorney.

Read this article for detailed information https://www.mashvisor.com/blog...

Good Luck

[Chris Seveney]

Quote from @Jason Garrett:

After listening to podcast 527 which was amazing I would like to use Subject to and seller financing . What is the best tool to find owners information on homes that this may work with if the owner doesn't reside at the property. Contact by mail first or cold call? Appreciate your feedback in advance !

You can use propstream to get owner lists with their information. you can mail them or have someone skiptrace their numbers.Another option is to search MLS deals that have seller or owner financing listed.

[Eliott Elias]

Quote from @Jason Garrett:

Quote from @Eliott Elias:

Right now is the perfect time to create seller financing situations. Sellers are back to earth, over listing and getting disappointed. All options are on the table. I’ve email 20 listings today about seller financing and 15 came back open to the idea. A few months ago I wouldn’t get a reply 

Could you provide an example of a concise email that's effective.  I appreciate your knowledge.

Hope all is well! Any chance we can work a win win deal and work owner financing with a 5 year balloon. I can get close to asking price and just need to work where the mortgage is less than the rent coming in,

I am easy to work with and we are closers.