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Updated over 7 years ago on . Most recent reply
How do you make seller financing a win-win situation?
I am brainstorming and searching for ways to make seller financing (of a SFR) a win-win situation. Does anyone have any creative ideas?
Scenario: The landlord is burnt out, near retirement and has some health issues. He was talking about trying to exchange all 5 of his properties into one nicer duplex though. Our market is extremely hot, and if he lists each property on the MLS they will likely sell at, or above, asking pricing.
My thinking:
Attempt to purchase at least one of his properties below market value (obviously), and show the owner how much he'd make in interest amortized over 30 years. Also, that he'd avoid 6% in broker fees on the sale. The only other thing I can think of offering would be purchasing each property as is, and cleaning them out myself. No need for him to do anything.
Am I missing any other benefit to the owner?
I'd appreciate any ideas/input!
Thanks,
Taylor
Most Popular Reply
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I pay 9% fixed amortized over 20 years for owner financing for 3 properties in my portfolio. Fairly high interest rate, but only 5% down and still cash flow $150/property each month makes it worth it.