Seller finance, the basics.

[Pete Storseth]

Hello BP. My favorite place on the internet .

I'm a newbie, I dont have over 5k, I dont make enough to save 30 or 40k this year, but I'm committed to be a landlord... housing provider....

So the banks are out. FHA loans and their siblings have been just a little too far outta reach for my high DTI, and I get that. So, how about seller finance?

What I'm trying to learn now is what the realistic expectations I should have for finding a seller in the position to finance where they make their asking price, but only after interest is factored in.

Hmmm. Could be tough. Maybe they just want out. Maybe they hate landlording. Maybe they just need monthly income on a property they thought would cash flow more than it does, and it's a good enough start for me.

I am not waiting for this to fall in my lap. I'm going to start marketing next month with my constant studying and reading material now has me more (but not completely) competent in the strategies I can excel at.

I'm a face to face guy. I went door to door selling telecom for 7 years and I'm not afraid of it. So with a VA, flyers, and a list of doors to hit I think I have a small advantage to other newbies.

But the list I am most into is non-owner occupied. So what's the more realistic interest rate for retiring investors, tired landlords, etc?

[Jeff Filali]

@Pete Storseth There's many people out there who will seller finance, I've acquired many properties that way, and have sold several that way.  That being said, with <$5K saved, I would suggest building some more capital up first.  If you put your entire savings as down payment, and have no reserves, you could be in trouble if anything goes wrong.  Maybe find a local more experienced investor, and ask them if there's anything you can do for them like marketing work, or rehab work, and make some extra income while working in the business, and learning a lot.  I know I've paid aspiring real estate beginners to do canvassing, phone calls, clean up work at rehabs, etc.  There's many ways to earn while you learn, and many of us who won't charge you for the education, as long as you're willing to work, and learn.  Once you have more saved up, maybe try to do a Joint Venture or two with another more experienced investor as well, to continue learning and make your capital go further. 

Good luck, keep grinding towards RE FREEDOM!!