additional benefit from owner financing

[Rich Weese]

I just replied to an idea that Terry Drake had and decided I should follow my reply up with a new thread for more input from others.
We talk a lot about hustling to obtain seller carry back financing. These are hard to find, but definitely doable. Most are satisfied when they accomplish that.
Many times, I've obtained further benefits from doing that. I mentioned I had a 60K note carried back from a seller. Alittle while into the loan, I contacted the seller. He had been receiving regular payments from me and seeing dollar value go down. He still needed a certain amount monthly. He had incurred a large bill and I offered to "help" him out.
I offered to pay him 20K. In exchange, I wanted a lower interest rate AND a discount on the balance still owed. He agreed to both my terms.
This was like hitting a second home run in the same game. First-owner financing. Second- discount and payment reduction. This is a great strategy when you're trying to eliminate debt-risk and get to free and clear properties quicker.
This strategy works well. Try it, nothing to lose---Rich

[Bill Gulley]

Hi, good deal Rich! This is common with private note holders, there is "lender remorse" about three months after closing, they realize, or think, they could have had cash to play with and they forget about the tax benefits!

You can always go back to the note holder and say you would be willing to pay an additional amount to principal if they will modify the loan. You can lower the rate or modify the term.

When the loan has seasoned for more than 12 months, you can ask the note holder to pay the costs of refinancing too!

Most older note holders wh have never done seller financing really hate it when someone pays 5 or 10 days late, when payments are paid by the 15th but never on the same date. I have heard them wanting to foreclose if payment was not received on or before the 1st. Well, read the note! So some become very motivated to get out of such deals after a year of bickering. Don't misconstue this, I'm not suggesting anyone should make late payments!

Investors need to listen for indications that a note holder is motivated to get out of a deal. They may call and simply say, we really need our payment because we have bills to pay, or I'm making my house payment or car payment with this.

As a third party buying and servicing notes I picked up many just from people being impatient. Good Luck, Bill