How to "Sell" the Idea of Owner Financing to a Seller?

[James Papiano]

Hi everyone, I just found out about a potential deal that is off the market. I was approached by our local realtor that a family is selling a house that has been in the family for many years. I thought this would be a great opportunity to discuss owner financing with the family. This would be my first attempt to ask this of a seller. 

My question is how and what terms that are reasonable do you typically use? 15, 20, 30 year note? What is a competitive interest rate for a SFH? What are some of the ways you have negotiated these types of deals? Any insight is appreciated!

James

[Thomas S.]

All you do is ask if they would be interested in the ongoing income created from seller financing. If they ask questions you know they are interested and you then ask them to suggest their terms. Never begin the negotiations. You then counter with numbers that will work for you.

Going in you know exactly what your minimum requirements are and target that or better in terms.

There is no standards there is only what you need or better to make it work.

Your ideal target would be the best bank rate but with seller financing that would be extremely rare.