Looking for Seller financing/subject to opportunities

Creative Real Estate Financing
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Looking for Seller financing/subject to opportunities

Makayla Hartley
New to Real Estate · New Castle, PA · Member since 2021 · 4 posts · 3 votes

I am BRAND new to the site and this industry, and was hoping this might be a good place to hear about off market opportunities in the general areas of Tionesta, PA, Logan, OH, or Pittsburgh, PA. I've been listening to the Bigger Pockets real estate podcast which educated me on the possibilities of no or low money down using seller financing or subject to deals, which to my understanding rarely or cannot happen through a realtor. My fiancé and I want to start our investment portfolio with STR's and are focusing on the areas listed because of their proximity to us and the attractions that would bring in tenants (Cooks forest, Allegheny national forest, Ohiopyle, Hocking Hills, and all the attractions of the city). We are looking for cabins, or even land parcels that we could build container homes on in Tionesta and Logan. In Pittsburgh, we are in the market for any single family home that could be good as an Airbnb. Any leads would be greatly appreciated as we are very new to the space and have not built much of a network yet. Hopefully this post is the first step in creating that network! Thank you for any and all feedback!

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Bill Brown
Rental Property Investor · Pittsburgh, PA · Member since 2018 · 40 posts · 16 votes
4y

Hi Makayla, I'm not an expert in off market deals, seller financing, or STRs, but I would encourage you to focus more on WHAT you want than HOW you want to get it at this stage.

I have a similar problem of being interested in too many areas at once, and that is a good way to spend your time get nothing accomplished. I recommend analyzing all of your interested markets and picking one or two at most, then deciding exactly what kind of property you would be looking for (I like all those markets by the way). I would also recommend talking to some agents in that market that have experience with what you are looking for. A good agent can give you tons of info on a market and you can still find deals on the MLS.

If you're looking to get into the game with no or low money, an STR may be difficult on your own. They can have a significant start up cost to furnish, outfit, etc. Not to mention an off market property probably will need some work to get it rentable. If you want to browse off market deals to get an idea, there are facebook groups for wholesalers, investors, and landlords in all different areas.

Bottom line is narrow your focus and attack from different angles to get what you're looking for. Good luck! Hopefully someone can give you some better info on those specific areas.

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  • Bill Brown
    Rental Property Investor · Pittsburgh, PA · Member since 2018 · 40 posts · 16 votes
    4y

    Hi Makayla, I'm not an expert in off market deals, seller financing, or STRs, but I would encourage you to focus more on WHAT you want than HOW you want to get it at this stage.

    I have a similar problem of being interested in too many areas at once, and that is a good way to spend your time get nothing accomplished. I recommend analyzing all of your interested markets and picking one or two at most, then deciding exactly what kind of property you would be looking for (I like all those markets by the way). I would also recommend talking to some agents in that market that have experience with what you are looking for. A good agent can give you tons of info on a market and you can still find deals on the MLS.

    If you're looking to get into the game with no or low money, an STR may be difficult on your own. They can have a significant start up cost to furnish, outfit, etc. Not to mention an off market property probably will need some work to get it rentable. If you want to browse off market deals to get an idea, there are facebook groups for wholesalers, investors, and landlords in all different areas.

    Bottom line is narrow your focus and attack from different angles to get what you're looking for. Good luck! Hopefully someone can give you some better info on those specific areas.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Seller financing is created not usually found. In this market seller financing is going to be a powerful tool to use. Interest rates are crazy and sellers can't be as picky

    1Reply
  • Elise Bickel TauberBusiness Member
    Real Estate Agent · Cranberry Twp · Member since 2017 · 384 posts · 198 votes
    4y

    I'm in the Pittsburgh market and I am not seeing owner financing options at all. The investors who are selling are selling because the market is hott and they can pull out cash and do something different or retire. No reason for them to hold back. Maybe a BRRR might be a good option for you with a hard money lender. Won't have to put as much down and if you do it right can turn it quickly and refinance out and move to your next one. And before anyone comes at me and says you have to let it season for 6 months or longer before you can refinance, I have a guy who doesn't require any seasoning so it's an option.

    0Reply
  • Makayla Hartley
    OP
    New to Real Estate · New Castle, PA · Member since 2021 · 4 posts · 3 votes
    4y

    Thank you everyone for your input! I definitely have some new ideas to consider and will work on narrowing my focus. @Elise Bickel Tauber, I will keep you in mind next time I need to see a property in Pittsburgh. Also, let me know the name of that guy you have!

    1Reply
  • Marco Bario
    Specialist · Frederick, MD · Member since 2017 · 474 posts · 454 votes
    4y

    Hi @Makayla Hartley -

    The Central Ohio Real Estate Entrepreneurs (COREE) real estate club has been putting out excellent content on the acquisition-related methods and strategies you're talking about. You may find leads as well. They run a very good Friday morning haves/wants and exchange meeting which is hosted on Zoom. I live on the West Coast but find value in being a member.

    Vena Jones-Cox who runs the club also hosts a weekly radio show (free) I think you'd enjoy.

    1Reply
  • Clayton Hepler
    Rental Property Investor · Pittsburgh, PA · Member since 2018 · 150 posts · 50 votes
    4y

    Hey Makayla, the bottom line is that you need money for real estate. I don't care what the gurus tell you. If you don't have a lot of money, then you will need to trade your equity for another investors cash.

     When Brandon Turner wrote that book, it was a VERY different market. You have cash buyers everywhere now because of the proliferation of real estate education, thanks to BP and MOST sellers do not want to sell to people for little or no money down. There are deals to find with seller financing but I've found that they are few and far between. (I look at a lot of deals.)

    I'd suggest you house hack if you want to put little money down

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Makayla Hartley:

    I am BRAND new to the site and this industry, and was hoping this might be a good place to hear about off market opportunities in the general areas of Tionesta, PA, Logan, OH, or Pittsburgh, PA. I've been listening to the Bigger Pockets real estate podcast which educated me on the possibilities of no or low money down using seller financing or subject to deals, which to my understanding rarely or cannot happen through a realtor. My fiancé and I want to start our investment portfolio with STR's and are focusing on the areas listed because of their proximity to us and the attractions that would bring in tenants (Cooks forest, Allegheny national forest, Ohiopyle, Hocking Hills, and all the attractions of the city). We are looking for cabins, or even land parcels that we could build container homes on in Tionesta and Logan. In Pittsburgh, we are in the market for any single family home that could be good as an Airbnb. Any leads would be greatly appreciated as we are very new to the space and have not built much of a network yet. Hopefully this post is the first step in creating that network! Thank you for any and all feedback!


     I normally just cold-call property owners in Columbus, Ohio to get off-market leads. If you can carve out a couple of hours a day you can find some great leads.

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    4y

    Sub2 and SF are just creative tools to solve problems. Seek the seller type that has these issues:

    Sub2 = sudden sellers with low equity. Haven't done 1 in 12 years.

    SF= tired older landlords/ owners that want tax mitigation with no headaches. Have sold and purchased 2 dozen this way but takes knowledge to protect yourself. 

    1Reply
  • Makayla Hartley
    OP
    New to Real Estate · New Castle, PA · Member since 2021 · 4 posts · 3 votes
    4y
    Quote from @Clayton Hepler:

    Hey Makayla, the bottom line is that you need money for real estate. I don't care what the gurus tell you. If you don't have a lot of money, then you will need to trade your equity for another investors cash.

     When Brandon Turner wrote that book, it was a VERY different market. You have cash buyers everywhere now because of the proliferation of real estate education, thanks to BP and MOST sellers do not want to sell to people for little or no money down. There are deals to find with seller financing but I've found that they are few and far between. (I look at a lot of deals.)

    I'd suggest you house hack if you want to put little money down

    Absolutely, I understand that it will always take some money to get into the game, especially with STR’s that need to be completely furnished on top of all the standard expenses. We do have some capitol to work with, but I am trying to set us up for the future as we plan to continue to grow our portfolio for many years. One person or one entity can only acquire a fixed number of conventional mortgages, and I am trying to avoid a situation in the future where conventional loans are no longer an option by finding unique opportunities now. Also, although we have some money to work with, it won’t go far if we’re having to put 20% down on each property we buy. I know of some less conventional loan types, but if you know of any you would recommend for my situation please let me know! I would rather use what we have as efficiently as possible, and be able to acquire 5 or 6 properties with it and allow our capitol to grow back again from the cash flow, instead of putting 20% down on 2 or 3, having a slower start, and slower growth. 
    0Reply
  • Travis Sterner
    Rental Property Investor · Pittsburgh, PA · Member since 2018 · 39 posts · 18 votes
    4y

    Local Banks are the best option here. We have had luck with combination offers, say 80% bank funding and 20% seller carry. They have also let us cross collateralize equity in another property instead of a down payment. The more you work with them the more they trust you.  Hope that helps 

    0Reply
  • Juan David Maldonado
    Investor · San Antonio, TX · Member since 2018 · 188 posts · 53 votes
    4y

    @Clayton Hepler Can you elaborate more about how you think the early BP books plus the rest of real estate investing education have changed from the early days to now? That is an interesting point you are saying. How the market is different now than it was back then. I've never heard anyone point that out. 

    0Reply
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