New to Real Estate · South East US/New Jersey · Member since 2024 · 23 posts · 10 votes
I understand that seller financing works in two ways: 1. Either give the seller a price and their terms OR 2. Use the seller's price and my terms. I was wondering what terms would be best to implement in a seller financing offer for a cash-flowing, mid to long-term rental property?
I am a first-time investor and want to ensure that I get the best 'bang for my buck', especially since I do not have the capital to allocate for a hefty downpayment.
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
2y
You need money or access to money to purchase low or no money down creative financing real estate. I know that sounds weird, but don't propose a low or no money down seller finance deal if you don't have sufficient reserves. The only guarantee when you buy a property is that you are about to spend a pile of money.
The way to win in real estate is to buy good assets over time and to never be a forced seller or a forced buyer. Getting into a deal without the necessary cash or access to cash creates a very real risk of being a forced seller. Call me old fashioned, but I think that slow and steady still wins the race. Build it once, build it right, never build it again. Maximize your income (work your a$$ off), limit your expenses (live off of nothing), and think long term.
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
2y
You need money or access to money to purchase low or no money down creative financing real estate. I know that sounds weird, but don't propose a low or no money down seller finance deal if you don't have sufficient reserves. The only guarantee when you buy a property is that you are about to spend a pile of money.
The way to win in real estate is to buy good assets over time and to never be a forced seller or a forced buyer. Getting into a deal without the necessary cash or access to cash creates a very real risk of being a forced seller. Call me old fashioned, but I think that slow and steady still wins the race. Build it once, build it right, never build it again. Maximize your income (work your a$$ off), limit your expenses (live off of nothing), and think long term.
Real Estate Agent · San Antonio, TX · Member since 2019 · 1k+ posts · 832 votes
2y
When setting seller finance terms, one of the things to consider is their motivation. What will they want out of the deal based on that motivation?
Terms in these areas are negotiable because the owner is basically the “bank.”
There are books out there on creative financing, like Pace Morby’s on BP, but I would first ask what their terms are and negotiate from there if needed.