How to get seller financing

Question

Account Closed · Answer

I agree with what Fred said earlier, a realtor can help search the mls for properties that offer an owner carry. Or you can always post in the craigslist Real Estate Wanted area, and lay out your down payment and max price, terms etc. Or you can call fsbo ads and ask if they would be willing to carry if you gave them x amount of a down payment. Gotta just get out there and look!

Chris Weaver · Answer

I would do this for a buy and hold. I'd like to get seller financing because it's more negotiable than a bank, they know the property so if it's a rental they know it will rent out. Also, it would keep more options open for the future.

Shelley F. · Answer

@Stanley E. we didnt have an attorney (but sure could have) and certainly didnt use a realtor. In my case the seller had foreclosed and had been sitting on these properties for a while. I heard about them while chatting with one of my mentors and he mentioned her. I approched her directly and also set it up with a title company. There was no realtor nor attorney.

Now, a few years later, she is dealing with realtors and is being told it cant be done...

Shelley F. · Answer

Its really funny ... I was just discussing this with a friend that is looking at land in Florida. She was the 'deep pockets' to a HML in California and lost a lot in the recession. I met her and she didnt want to do an owner finance. We ended up coming to terms that suited both of us...and have gone on to do many more of her 'foreclosed ' deals.

Now she is at the other side of this and is wanting to buy with an owner finance...and asked me how I did it. The realtors tell her it cant be done.

I reminded her of the steps we went through...

The seller needs to be in a position to carry..in other words, cant have a big mortgage to pay off

The Buyer needs to have a suitable down payment ( skin in the game)

The interest rate needs to be reasonable (ours is 7)

Term needs to be relatively short...our favorite term is 5 years.

We went through a lot more but you get my drift...

When we first started talking I was not aware of just how expensive it is to foreclose...so I understand the caution.

Now...any investor friendly agents near Ormond Beach?

Jeff Rappaport · Answer

@Chris Weaver, to truly answer your question we need more information from you.  What are you trying to accomlish with owner financing?  Are you using it to buy and hold?  Wholesale?  How much money are you or your buyers willing to put down?  My experience is that any seller that is offering owner financing is probably asking for a big down payment.  When you approach an off market seller and offer owner financing I try to keep the down payment low and get the seller what he/she needs.  The best part of owner financing is that the price is almost irrelevant.  I can offer way over market value but the rest of the terms need to be what I want.

In my opinion, figure out what you are trying to accomplish and find the property.   Make the seller multiple options and let the seller tell you which one will work best for them.  Once they give you some direction negotiate based on what you want and what would best suit their needs.  Once you find that common ground you will have yourself an owner finance deal!

Fred Weinkauff · Answer

If a seller has an existing mortgage then they will need you to get your own financing. A seller that owns their home free and clear of Loans and Mortgages will be much better candidates for owner financing. Ask your realtor to run a search in the MLS for properties in your target area for possible seller financing.

Katrina P. · Answer

After you find a property, just make an offer! You won't usually know when a seller will hold a note unless you propose it. I have seen some cases (only Multifamilies or packages) where the listing said "Land Contracts acceptable" or something of the sort. But usually, you're just shooting in the dark with regards to what sellers may be open to it. That's my experience, anyway. But also, if they're working with an Agent, that has already been discussed and the Agent knows whether or not the seller will entertain it. But again, you just have to ask. Hope this helps!

How to get seller financing

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