Seller financing

[Mitch Ottoson]

Hello BP! After reading Brandon Turner's book on investing with low and no money down, I began looking for some ways to use creative financing. I found a property that is owned free and clear by a seller that I'd be interested in inquiring about seller financing.

The house is going for $335,000 so I was thinking of offering $5,000 down and a 30 year loan at 4%, for a monthly payment of $1,575. Are the any other costs that I would need to factor into my offer?

Additionally, what steps should I take as the professional investor to help the seller feel comfortable with this deal?

[Jeff Rabinowitz]

There will be little you can do with such an offer. It never hurts to write offers as they give you some practice but you could write thousands of offers like this before you had one accepted. If you want funding for 30 years at 4% you need to find a bank. Oh wait, you wish to put only 1.5% down--you are not being realistic.