Found a seller that’s free and clear.

[Christopher Brown]

Found a seller that owns a 4 unit free and clear. He responded to one of my direct mail letters. I’m already under contract for another house, but this seems like a great opportunity to get a house with seller financing.

What benefits could I explain to the seller if he were to owner finance the house with? I figure he’ll save a ton in realtor fees and capitol gains, but what else? I’ve run some numbers, and he seems to have a price in mind around 475k. I think that’s a bit much when I looked at sold houses in the area and figure I would offer 400k, but the owners interest is what I don’t know how to negotiate. Is there a set rate? 4% could work for me but if I go higher than that, I begin to loose cash flow in the property. Just trying to get creative with my financing options since my capitol is tied up in the house I have under contract and I feel like this could be a great cash flowing property.

[Oscar Varela]

@Christopher Brown, try to find out what his pain is, why is he selling in the first place? I wouldn't mention interest unless he brings it up. If he really cares about getting a specific number, you can even offer him a higher purchase price at 0% interest. Maybe that can get his attention. Another benefit of seller finance is he still gets monthly cashflow without having to deal with being a landlord. You'll be upgrading him from a landlord to a lender. The bank always makes more money at the end!

But you need to find out his pain first before you can offer him a solution.