How to get seller onboard with Owner Financing

[Jerry Zhang]

Hi,

I'm currently working on a deal with a seller who's looking to retire without substantial savings and buying his mobile home park with creative financing. We're giving them about $90k down but after he sent the paperwork to the attorney he has cold feet and wants to back out of selling. Because he's worried if the park defaults he will be screwed. Wondering how to build trust in him to do seller financing with us after this.

For reference we have 100% close rate, my thoughts approaching this is to counter back and say the risk of default is very rare, if he's worried about the park defaulting he just needs to save up $20k in reserves and he'll get paid $70k in income for the park for the next 5 years while he waits for balloon. If we default he's actually getting paid more as well as the park back.

Thoughts?

[Gino Barbaro]

@Jerry Zhang

You can also put a lien on one of your assets for a short period of time. If you don't pay he gets the park back and your asset.

That would put me at more ease, knowing that you have skin in the game, and are going to pay me.

Gino