Seller finance! What do I do next???

[Nate Julian]

So I have been dreaming of purchasing these properties for a long time. I’ve known the timing wasn’t right so I didn’t pursue, but last week I said screw it and showed up at the owners house. We’ve never met, owner invited me in and we chatted for about 15 minutes about all sorts of stuff, and briefly touched in the real estate. I asked if seller  was familiar with seller financing, and the seller was.

Seller is even talking w her retirement manager? To see if she should sell.

I told seller I’d be back in a week or so because the seller needed to leave. ( seller wasn’t trying to get out of the conversation) 

Where do I go next ?

I’d like to show up prepared with some compelling arguments.

I’ve read a lot online, but if anyone who has experience in this situation has time I’d love to chat for a few minutes in the next few days.

Thanks all!!!

[Jerry W.]

@Nate Julian, good job.  I have done a few seller financed.  Like any other deal run the numbers.  it is critical to find out what the needs of the Seller are.  Are they looking for long term funding say 15 years?  Or are they looking to get all their money out in a balloon payment in 4 or 5 years?  It is important to know.  I often mention the benefits of payment sin easing capital gains taxes if they have seen an increase in value since they bought it.  I also point out the property itself is great security for a loan, it definitely has value, and I mention how bad interest rates are in banks for CDs.  With CDs getting less than 1% interest interest they could could make 4 times that by holding a mortgage on the property.  You can always build in a balloon payment if they want, but it would be a great long term stream of income without all of the work associated with managing a rental.  They don't have to replace toilets anymore. I am sure the laws are a bit different in Utah from WY, but probably not a lot.  you might talk to a local title company to get an idea on the cost of doing a closing and getting a mortgage drawn up, so you have some idea of the expenses, and how long it will take to close.  They will want a down payment.