Seller Financing... are you for or against? Comment below

[Account Closed]

Hi All,

I find the strategy of acquiring property with seller financing (or subject to), very attractive so that I can own property in my local market without a poor Debt to Income ratio. I would also like to utilize seller financing for out of state deals. Any tips or suggestions that come to mind? How about any unforeseen risks or exposure? Let me know what your thoughts are about getting deals seller financed please!

Thanks!

[Christine Lee Middleton]

Hello @Account Closed subject to is honestly my most favorite avenue for investing. I like to find homes in Pre-Foreclosure, and turn them in Lease to Buy (Rent to Own) properties. The biggest challenge of course is educating the seller on the benefits for them....especially those in Pre- Foreclosure. I come in and with down payment which is the amount they are behind. Depending on that cost, I may be able to give an additional $1K to sweeten the deal and help them move. The new tenant pays me a down payment which puts money back in pocket and a couple hundred each month until they purchase.

Of course everyone knows about the "Due On" clause which rarely ever happens. When I was newbie, the more seasoned investors who received advice from never faced this with the bank. Can it happen, yes. Will it, probably not as long as you're making the payments on time.

You should check out Bigger Pockets Podcast #13, #84 & #344 

HAPPY INVESTING!