Seller Financing

[Elijah Grant]

Hey Everyone,

I am looking for creative ways to fund my 1st deal. I've missed a few opportunities because I didn't have a plan for financing soon enough and I would like to avoid this problem the next time. Does anyone have experience with seller financing? I think this would be the most ideal situation for me because it would give me the ability to work with the seller directly instead of searching for private investors. Any advice for finding seller financing?

[Steve Vaughan]

Hi @Elijah Grant

All of my seller-financed houses and apt bldgs have been from tired boomer+ landlords that want to retire from the headaches, but like the monthly.  They have been self-managing for years and don't like PMs or agents.  They own free and clear.  They know a SF transaction can help their cap gain tax situation and provide them a decent return on their equity.  More than the <1% they'll get in a bank anyway, lol.

I find them mostly by calling crude for rent ads I see in windows or ads in the newspaper that are landline phones.  Some are active online, but most are not. Decent, but tired looking plex owners get a postcard from me as well.  If I see an old dude mowing the lawn at a plex, he gets a card too!  

They are not Jack and Jill homeowner listed on the MLS that have a mortgage and need to buy again.

I have never seen one playing on a phone.  They like diners in the morning. They are often in Lowes or Home Depot getting supplies and they wear work clothes.  

Be on the look-out for your 'target seller' and strike up conversations.  Take different routes to work and look for tired plexes. Look up the owners and send them a postcard.  Most own multiple buildings.  Good luck to you!