Owner financing-how do I bring it up to seller

[Craig Montesano]

Hi BP

I just made a cold call on a turnkey duplex in my market. Owner loves the property. Said its been a great money maker over the 17 years she's had it. But sounds like she would be willing to sell at the right number. She wants 85k which would be fine with me...as long I could get her to hold the note. I don't have the 25% to put down for a conventional mortgage....

How do I bring up the idea of owner financing without scaring her off. Not sure how to approach her. I really think she may entertain the idea if I convey it to her the right way...benefits and such.
Thanks for any and all advice

[Account Closed]

I ask if they are interested in replacing their rental income with a note secured by a deed of trust. I point out the benefit of monthly income, no expenses, with no land lording. It's really not more complicated than that. We talk about their current gross rents minus expenses (the real expenses, not the ones they tell potential buyers) and I offer to make a payment that matches that income. I like 3-5 year balloon notes, no prepayment penalty. You can play with the interest rate and loan term to make the payment desirable.

Many land lords who have had the property for awhile are used to monthly income and usually like it, especially with a decent interest rate. They 're easier to work with. Sellers who think they need to cash out often have limited (or non existent) financial sense and planning. skills.