Asking seller to be the lender

[Account Closed]

Hello everyone,

Has anyone everyone requested and negotiated with a seller to be the lender? I've heard of this before but would like to understand the approach if it's even viable. What are the steps you took? And did you end up doing a cash-out refinance to pay off the seller in order to own the property outright and have a fixed mortgage?

Thanks!

[Thomas Smith]

I'm working on a deal right now where a house that is on the market has very motivated sellers but little interest by buyers.  It is in a good neighborhood but the house has an odd set up making it difficult for them to sell.  First step was running the numbers.  I made sure that the price that I was going to offer (close to their asking) would be able to work as a rental.  Next, I made them an offer that lined out my terms such as the price I was willing to pay, the amortization schedule term, interest I was willing to pay, and I also promised a full bank refinance within the first 5 years.  I stayed close to their asking price but also asked for certain repairs to be made before purchasing (saving myself an initial $5k just in repairs).  Basically, if you can give them what they need, they'll be more willing to work with you on the terms.  I may be paying a little more than I generally would on a rental house but if they're carrying the loan for me (with zero down as well) then I'm avoiding the hassle of the bank initially.  By lining out my specific term, they know that I'm serious.