All Forum Posts by: Garrett Gatton

Absolutely agree, with higher interest rates and prices dipping a bit, people still want top shelf prices and it won't be possible for them - therefore, seller financing comes in handy and gets these sellers their higher asking prices while giving buyers a lot of power by having a lower mortgage payment. As a investor and agent here in Columbus, I closed on a seller finance deal a few weeks ago for my client and he's getting 26% cash on cash return on this deal, so yes, it definitely works and is 1000% applicable to real life!! Cannot recommend it enough

Can you give a case study on some terms for past seller-financed scenarios? It can be overwhelming to think about how many variables could be manipulated to create a win-win scenario for buyer and seller.

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Dayton, Ohio

I am looking for some good book recommendations specifically on multi-family and syndication. What are some of your favorites that you read in 2022?

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Quote from @Dave Skow:

@Garrett Gatton- agree - in WA state - many sellers are providing credits to buyer in order to help with permanent interest rate buydowns

As in seller closing costs to residential buyers? Or you are seeing this on commercial deals as well?

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Dayton, Ohio

Quote from @Christopher Juntura:

Quote from @Michael Evans:

I agree but you have to think that banks have seen this coming after all the 2.5-3% loans they have out there. If the title is transferred, it will trigger the due sale clauses. I look forward to hearing more on this topic.

Thanks,

Mike in Palm Desert, CA

All really depends on if there is a mortgage, but you can buy insurance on it as well were the due on sale clause was triggered.
I'm doing a lot of negotiations where sellers in the right position are open to it now even if it's a portion. I've noticed that the more informed sellers are better positioned to take such risks, but again I'm better off getting seller financed deals with talking to the seller directly than their agent. I'm working on one now where my agent has asked and they said no but went for a showing and the seller showed the multi and I got to have a conversation throughout the showing and they were happy to see what I could put together for a deal.

Christopher what insurance companies do you use to cover the event that the bank calls the loan? Does this just apply to residential (1-4 units) or larger multi-family?

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Dayton, Ohio

Quote from @Jacob Hornberger:

I agree, interest rates are a lot higher than people have become accustomed to. If they stay/ continue to increase, people will start looking for other options (seller finance)

How long do you think it will take for sellers to move out of denial to acceptance of the market changes and their willingness to entertain creative finance?

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Dayton, Ohio

Quote from @Eliott Elias:

Owner finance is my first approach in any situation where I am buying.

Elliott what is your default seller finance proposal? I understand each scenario is custom but what do you shoot for?

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Dayton, Ohio

Quote from @Arsen Atanasovski:

Depends who will be president next term if it’s the same guy, land contracts will be the way to deal real estate. Let’s be honest eggs are $9. And we just blew $500 billion on a European country that has no benefit for ours. I hope I see interest rates go up to double digits and double then now. I’ve done most of my deals on land contract so I really don’t need the banks but it’s sad how much has changed in 18-24 months. Cost of living now is up to par with Europe……. Sad.

As interest rates go higher and banks tighten lending standards sellers will be forced to consider creative finance to get the price they want.

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Dayton, Ohio

Quote from @Michael Evans:

Thanks,

Mike in Palm Desert, CA

You're saying that in scenarios where properties are levered sellers will not be able to carry the paper because of the bank calling the loan?

That would definitely be risky to try to seller-finance a property with an existing mortgage on it. One option would be to pay off the existing loan balance for the seller assuming there is not much left on the loan.

0 Votes

Dayton, Ohio

Agree OR disagree…

As market conditions change seller-financing will be more and more common.

Annnd go 🏁….

2 Votes

Dayton, Ohio

Quote from @AJ Smith:

Quote from @Garrett Gatton:

AJ -- Admittedly the Midwest is where I feel most comfortable and investing in high growth markets in the southeast intimidates me. We are in Lima, Ohio which is a Tier 3 market (depending on what you call Tier 1 haha). Cash flow is the name of the game here. Great job making it happen!

Garrett - let's talk Ohio and Tier 3 markets! I invest in Tier 2 markets in Iowa and would love to get your take on Property Management and Contractor work in smaller towns.

AJ - our area is around 100,000 in the Limaland area which would be city limits and the surrounding townships/school districts. We are a heavy manufacturing area along with two medical systems and 3 small community colleges. Historically we don't hit the highs and lows the same as other markets that are bigger than us. Property management is tough in small towns because there are a lot of solo-managers who do it on the side along with selling real estate as an agent or people self-manage. There is really only one large property management company (managing over 300 units) in our area and it runs out of our brokerage. Depending on what grade of properties you invest in management will vary accordingly. We don't touch D class properties because of the risk vs. reward associated with them.

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All Forum Posts by: Garrett Gatton

Garrett Gatton has started 8 posts and replied 33 times.

Post: Agree or disagree 🧐: Seller-fin. will be more and more common

Post: Best REI Book on multi-family and syndication you read in 2022?

Post: Agree or disagree 🧐: Seller-fin. will be more and more common

Post: Agree or disagree 🧐: Seller-fin. will be more and more common

Post: Agree or disagree 🧐: Seller-fin. will be more and more common

Post: Agree or disagree 🧐: Seller-fin. will be more and more common

Post: Agree or disagree 🧐: Seller-fin. will be more and more common

Post: Agree or disagree 🧐: Seller-fin. will be more and more common

Post: Agree or disagree 🧐: Seller-fin. will be more and more common

Post: 😍 Why I LOVE Investing in the Midwest