Seller financing deals
How would you recommend someone learning about real estate to find deals that could have seller financing? As a college student, I have a capital problem, so if I wanted to get into the game, a seller finance deal could be one of the better ways. Any other capital-generating recommendations would be very appreciated as well. I hope this makes sense, thank you
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@Jason R. Besanceney Two things can make a deal, price or terms. Generally it is either or. Either you get a good price but you have to offer cash or strong financing, or you get great terms, like seller financing or sub-to, but you buy at full price or even a premium. Occasionally you’ll get both but you’re already looking for a needle in a haystack looking for one or the other.
For seller financing, the owner will have to have equity. Often these are D class, lower value, high cash flow properties. Beware! And they are probably going to want a down payment to show you have skin in the game. They’ll sell at a premium to you and basically be the bank, holding the mortgage.
I never liked these because basically you are married to the property. You may be able to refi out at a better interest rate but you’ll have to hold onto the property for years before you can sell high enough to get your money back.