Owner financing questions

[Guillermo Oyola]

Two part questions:
How can I do owner financing when realtors are involved? If property is listed on MLS with listing agent and I reach out direct to the sellers agent, is there a way to structure the deal so the agent gets their commission?

If owner still has small loan balance but considerable amount of equity, can I still owner finance the deal?

[Marco Bario]

Originally posted by @Guillermo Oyola:

Two part questions:
How can I do owner financing when realtors are involved? If property is listed on MLS with listing agent and I reach out direct to the sellers agent, is there a way to structure the deal so the agent gets their commission?

If owner still has small loan balance but considerable amount of equity, can I still owner finance the deal?

This is the creative finance forum... so let's get creative:  

REALTORS:

You could offer one or both realtors a 2nd position note secured by the property for the commission. They'd wait to collect their full fee, but you could also pay them a yield on their outstanding balance.

You could offer one or both realtors a note as mentioned above, but secured by another property you own. Maybe one with more equity so they feel more secure.

You could offer to cut your realtor in on the deal. You could give them a piece of the equity with the option to settle them out at a later time (such as a refinance), or wait until the sale of the property.

You could offer a partial on a note you're collecting on. They would receive a certain amount of principal plus interest until the partial balance is paid down, then the note payments would revert back to you/

You could offer something else of value, besides cash. Timeshare days? A car, boat, or RV? Services such as accounting, renovations, personal training, marketing services, etc…

UNDERLYING FINANCING

You could create a wrap. It's similar to "subject to" except the underlying (existing loan) gets wrapped by the new seller-financed loan. You make one loan payment... often to loan servicer to uses a portion of your loan payment to pay the underlying payment, then disperse the rest to the seller. When the underlying is paid in full, the seller keeps all of your payment. 

I hope these ideas lead to closed deals...