How to find Owner Financed Properties?

[Mike Nelson]

I'm looking to build a portfolio of properties, practically owner financed homes with a 10 year ballon. I would prefer 0% intrest and 0 down but if I have to bring in private money to make these deals work then that's ok to. My question now is, how do I find these sellers and what specific list should I target?

[Aaron Mazzrillo]

You don't "find" owner financed properties. You negotiate with owners to carry paper. Your best bet is through direct marketing. You can put up "We Buy Houses" bandit signs. You can send mail to properties owners who do not have a mortgage. You can drive for dollars, or scour neighborhoods looking for opportunities.

It is through the negotiation process that you get low or no down payments and zero interest.

Not only have I negotiated zero down and no interest, I also negotiated no payments for 5 years. More than likely, your sellers will want some interest so my question to you is, why wouldn't you pay 3-5% amortized over 30 years?

Balloons are for the circus and should have no place in your investing business (unless they are notes you are carrying back!). They are risky and have high potential to cause great financial hardship if you cannot figure out a way to pay them off. If you had purchased a whole bunch of properties in 2002, at great prices, with very low interest, what would your portfolio look like at the end of this year? Leave the balloons to the clowns and go for long-term amortizing debt. For what you owe today, you will be worth tomorrow!