How do I present a seller financing offer?

[Edgar Garnys]

Hey all, Happy New Year!

I am looking to take advantage of the seller financing strategy this year. How do I make a seller financing offer?

I know how to run the numbers and understand what the benefits are for both parties, but I am not sure how to present the offer from an execution standpoint.

Do you recommend working with a buyer's agent that has knowledge about seller financing or can I present the offer to the seller's agent (if the property is on the market) on my own? 

Also, should a real estate agent assist me with writing up the contract or should I work with a lawyer? I am hesitant to work with a lawyer as they will likely will require a fee up front. 

I know that most purchase contracts have a section that talks about seller financing, so I do not know if it makes sense to create a seperate contract if I could include the terms in the general purchase contract.

Thanks for your help!

Edgar

[Steve Vaughan]

Quote from @Edgar Garnys:

Quote from @Steve Vaughan:

Quote from @Edgar Garnys:

I've never used a buyer's agent for SF.  All of my buys except one were off-market,  direct with the owner. I offer with a friendly 3 scenario letter of intent.  Option 2 is generic SF about 10% higher than the cash out offer of scenario 1.  

Then they would ask about it.  Tell me more about option 2.

We talk out the details and I fill out a standard PSA and submit to title once signed. 

Thanks, Steve! I like the approach of offering multiple scenarios. Can you clarify what the scenarios are again? It was a bit hard to figure out from your response.

 Option 1 cash out the seller.  Lowest price. 

2- seller financing.   Usually 10% down, pmt about 6/9 of rent, market interest rate. About 10% higher price.  

3- Lease with option or master lease option if MF.  Another 5% or so price increase.