Seller Financing Intresting Strategy

[Neil Robertson]

Wonder if anyone has used this interesting strategy that I was kicking around 

Lets say you get a seller financing deal for 100,000, 30 year amortization, 8 year balloon @ 3% (balloon payment would be 

$81,829.19 after 8 years.)

Lets say after 3 years you offer the seller to payoff the remaining balance but for doing so you ask for a 10,000 or 15,000 discount on the principal you owe, making this an even better deal for you. 

The seller gets their money earlier than they expected and you get a good discount on the property.

Has anyone tried this method? i guess it would really depend on the seller and their situation

I read a forum post a while back but couldn't find it 

any feedback would be awesome! 

thanks guys 

[Jim Stallings]

@Neil Robertson Yes, with seller financing when it comes time or even better early to cash out the seller I've always received a discount. Some discounts are better than others. When I come across some money I review my inventory and strategically decide which one is going to make the most sense to payoff. I tell them that I've come across a little bit of money and I was thinking of them and wanted to give them first shot at the money. Let's say I owe them $50,000 I would ask them how much they would be willing to accept for a cash payout. Many times they come back around $40,000 to $45,000. I let them know we typically pay around 50% that's when the negotiation start. But typically I have a a seller finance seller that is interested in cashing out and they'll always take less!