All Forum Posts by: Daniel LeGare

Hi Daniel! I sell a lot of properties with seller/creative financing in the Austin area. Many of those deals have agents on both sides who will earn commissions. It's actually cleaner and more straightforward than building in assignment fees here and there. You are correct in your assumption that it will impact how low they can go on the down payment, though, b/c commissions will need to be paid out of closing costs. You can assume about 1% in closing costs in addition to commissions so you're starting around 7% before the seller gets any cash at closing. That said, the other agent and I frequently reduce our commissions on these deals to make them work and, even if the agents don't, the seller would still be getting around 3% at closing with a 10% down payment which, to me, could be a win-win depending on their situation. They get cash, you get a pretty low down payment. We also almost always get the interest rate below 5%. That isn't unrealistic at all. For seller financing deals, I show sellers the interest earned over the life of the loan and total proceeds from the sale. It is usually pretty significant and might tip the scale in your favor to get them to accept your offer. Hope that helps!

This was SO helpful, thank you Beth!! You answered questions I didn't even know I had.

0 Votes

Dallas, Texas

I recently found a house in Dallas (listed on Zillow for 120 days) that is 100% owned by the seller, and they're open to seller financing. I am interested in buying the house and renting it out. I have the ability to put 10% down. Big potential downside- both a selling and buying agent are involved here and I believe they're expecting their 3% each.

I have never purchased an investment property before (although I do own my primary residence), let alone done a seller financing deal. Can someone walk me through the thought process I should be using when constructing the offer? I'd need the interest rate to be roughly 5% to breakeven on an interest-only loan, and was considering a balloon payment in 5-7 years. I know that interest rate is WELL below market. So maybe this simply won't work.

The seller is highly motivated to sell and has already knocked their price down 6% since listing it 4 months ago. I'm open to all suggestions, advice, and criticism.

2 Votes

Dallas, Texas

Hello BiggerPockets community! I'm Daniel from Dallas. I have worked in finance for several years and recently became a CFA Charterholder. I aim to buy my first investment property this year and am considering residential opportunities both in DFW and OOS.

I enjoy college football, video games, and lifting weights.

Excited to learn and connect with you all!

4 Votes

All Forum Posts by: Daniel LeGare

Daniel LeGare has started 2 posts and replied 3 times.

Post: Dallas TX // Seller Financing Deal on the Table, First Timer

Post: Dallas TX // Seller Financing Deal on the Table, First Timer

Post: Hello BiggerPockets! New PRO here

Daniel LeGare has started 2 posts and replied 3 times.

Biggerpockets Logo Post: Dallas TX // Seller Financing Deal on the Table, First Timer

Biggerpockets Logo Post: Dallas TX // Seller Financing Deal on the Table, First Timer

Biggerpockets Logo Post: Hello BiggerPockets! New PRO here

Post: Dallas TX // Seller Financing Deal on the Table, First Timer

Post: Dallas TX // Seller Financing Deal on the Table, First Timer

Post: Hello BiggerPockets! New PRO here