All Forum Posts by: Dawn Miller

The question you should first ask yourself is why would the seller enter into one of these creative transactions instead of pursuing a traditional sale? Rarely are there benefits to the seller to structure a transaction in the various ways you propose.  Sellers typically  become motivate when they cannot sell the property due to price, defect or simply bad market fundamentals. 

If the reason is one of the three I pointed out (usually is), it should create pause on your part. Too many investors focus their attention on how to get creative with their purchases and ignore the fundamentals of the actual real estate and the basis in which they are acquiring property. In fact two week ago I tried reasoning with a brainwashed Pace Morby follower in these forums who stated he would happily complete a seller finance deal for more than FMV value, effectively putting him under water if he could acquire the property without using any of his money and the property cash flowed. This is a case study of what to avoid if you decide to go down this road.

Bringing this back to my initial comments, has this particular seller articulated his/her motivation? That should tell you whether this is a property worth pursuing.

@Dawn Miller You mean you own the property with no debt on it (free and clear) then you sell the property and provide a note to the buyer?  Then you are making the profit of your total payment - what your costs are to get into the 

@Dawn Miller You mean you own the property with no debt on it (free and clear) then you sell the property and provide a note to the buyer?  Then you are making the profit of your total payment - what your costs are to get into the property.

You receive the piti from your buyer and you then pay the underlying debt with that payment. You are just making profit from the yield play.  

We buy these types of notes.

Bob P. do you ever talk about creating 2 notes when doing seller financing and then selling the 1st and keeping the 2nd for infinity Return?

You will most likely get better offers as you increase the size of your buyer pool. Offering to a couple investors gives you negligible data. Listing it in Zillow or the MLS will give you maximum exposure.

After getting broad exposure, then decide how those investors' offers compare.

@Dawn Miller I've been on the buying side of the equation several times and worked directly with the seller to come to terms. I'm happy to help if I can. DM me