I'm attempting to purchase a triplex through owner financing. I have done my research but it seems that everybody forgets to explain how the realtor gets paid in this transaction. I know that has to do with the listing terms between the seller and the agent, but let's say I only have $5k for EMD and no downpayment, and the owner has no money. How can he come up with the realtor's commission when owning financing?
Real Estate Agent · Sandwich, MA · Member since 2014 · 974 posts · 636 votes
5y
@Luis L. González París
This is just a hypothetical, correct?
1. Why would a seller with no money owner finance a deal? Seems very odd they wouldn’t be trying to cash out some equity in a paid off home.
2. Why would a seller accept an offer with no down payment AND owner finance? This leaves the buyer with no skin in the game.
3. If there is an agent involved on the listing side, the commissions will be outlined in the listing agreement. In a case with a down payment from the buyer, the down payment could be used to pay commissions at closing.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y
Nobody said you can buy by owner financing with only $5k....you have to put enough down, at least 10-20%, so the seller can pay the agent, his own closing costs, plus have some left over....and you need to come across as worth the risk.