Seller Financed Deal-How to structure

[James Little]

I recently placed an offer on a cabin in the Smokey Mountains to use as a STR. It's a solid deal with a 30% ROI with $5,000 monthly cash flow. I had trouble getting traditional financing and after multiple attempts finally found a HML for which I was able to structure a deal. I have a closing date of 8/20 and the HML contacted me today to inform me that they cannot do the loan because it is considered a rural location (2 miles outside city limits and 8 minutes from Dollywood). It is an amazing location with 2 acres which gives the ability to build other cabins on the same property. I feel like I am out of options for financing. I would like to discuss with the Seller the potential to do Seller Financing, which I believe he would do as he has 20 other properties and he was just letting go of some older properties that need renovations. We have already been involved with his relator negotiating the original deal. My question is how do we structure a seller financed deal without cutting out his realtor? What do I need to know about structuring this deal to present to the Seller? This is my first investment property and I have already learned so much just trying to get the financing, but I am having trouble finding much information on structuring deals through the Seller.

[Jordan Williamson]

The realtor would still get paid as you would typically make some kind of down payment to the seller. That being said, I love owner financing and you absolutely should see if its an option, but if it is not, I wouldn't give up on other loan options. Call all the local banks nearby (small banks not national banks) and see if they will;l do it either on the portfolio/personal side or on the commercial side. If they won't do it (after actually calling all 18 of them) then pull up craigslist/ Facebook marketplace for that area and look in the real estate services offered section. You will find hard money lenders that are in that exact area. They will be familiar with the location and be willing to lend. You may pay a premium for it, but you can find a hard money lender if you want to.