Hard finding financing

[Zoie Holley]

So for the past week I’ve been diligently working to find homes for sale that I could pitch seller financing too. It seems like every single time I call they never fail to mention how they always have a cash buyer on the back burner and they want nothing to do with seller financing. I do my best to tell them the pros of owner financing and seems like I get shut down within 5 minutes before I’ve even made an offer.
It’s frustrating and I’ve been giving fair offers. So my question is how do I get past the “not wanting  to do owner financing.”How did you get your first owner financing deal? Also if you don’t mind telling me the terms/criteria of the deal that would be nice!

constructive comments only. 

[Marco Bario]

@Zoie Holley, @Patricia Steiner -

2021 saw a 7% increase in the number of seller-financed loans originated. There were almost 90,000 seller-financed loans with a combined total balance of $27.3 billion. That was in a seller's market. Now interest rates are rising, inflation is high, and sellers in high-priced markets may face capital gains taxes when selling a property because of the sharp increase in property values. I remain bullish on all aspects of seller financing. 

You can read more about the 2021 stats here: https://noteinvestor.com/notes...

My advice to you, Zoie, is to ask the sellers what they plan to do with the money and if they expect to pay taxes (know the probable answer to the tax question in advance) on the lump sum proceeds. 

Older people, in particular, appreciate a monthly income. Walk them down the road of showing how their money will last longer if you were to pay them a yield around 5% vs. what happens to money sitting in the bank or a money market account earning 1% if they're lucky. 

Tired landlords also appreciate a monthly income that comes without tenants, toilets, and trash-outs.  

On the topic of taxes - an installment sale (IRS term for seller-financing) can defer and possibly reduce capital gains taxes when selling a property. Read IRS Publication 537 to learn more. Understanding the tax code (don't give specific tax advice) is very powerful in real estate.

Hang in there!