How to find seller financed homes for sale

[David Rutledge]

Good evening,

I am wondering if anyone has any suggestions on how to go about finding properties with owner/seller financing?

This would be for an investment property not a lease with an option to buy.

Would it just be through agents, if it is mentioned in the listing etc... or is there another way to find these kinds of properties?

Also, can someone tell me how seller financing usually works. I have very little knowledge on it but the idea intrigues me as a way to obtain more property over the coming years. 

Thanks for your time.

David

[Don Konipol]

@Ray Harrell

Sellers will owner finance because (1) they will be able to sell for a higher price because they will sell to people who can’t get institutional financing, (2) they think the interest rate they receive on the money they financed, usually 6-10%, is better that the 2% bank accounts are paying (3) they get to spread out the gain on the sale of property over many years and not be bumped into a higher tax bracket immediately, or (4) they can sell the property faster as a buyer doesn’t have to wait 45 days to fulfill institutional lending requirements

Buyers may want owner financing because (1) they save the points and other fees associated with institutional financing (2) they may own the maximum number of properties financed allowable by lending institutions (3) they as full time real property investor may not be able to prove the amount of income necessary to obtain a loan (4) they may not qualify for conventional financing, only hard money, in which case owner financing may be at a much lower interest rate (5) they may have liens, judgements, etc. outstanding that make obtaining outside financing impossible, (6) they may want to close quicker than available with institutional financing.

Please let me know if this makes sense