All Forum Posts by: Manuel Sandoval

Hi,

It seems that my only option to buy a multi-family complex would be through seller financing because, as a student, I do not have excellent credit.

How would I approach a potential seller to ask for seller financing without sounding desperate (since that is my only option) or naive.

Some example sentences would be the best.

Thanks!

Manuel

Thank you everyone for all your responses and for clearing this up for me.

For those of you who have some experience with buying already occupied apartment complexes through seller financing, is the monthly income coming in from rent sufficient to pay the seller his required monthly payments?

Thanks for your response. Yes, the bank is telling me that I do not have sufficient credit. I am trying to build my credit using secure credit cards, but besides that there is not much I can do while being in school. If I were to somehow obtain enough money for a reasonable down payment, do you think I have good chances of making a deal with a seller for seller financing?

Hi,

Recently I have become very interested in apartment investing, so I have doing a lot of research.

I started reading about seller/owner financing, and I'm confused about something. Buyers usually go through this option when they cannot get a loan through conventional means, such as from a bank. I understand that in seller financing, the seller takes the role of the bank, the agreement is usually around 5-6 years, and at the end of those 5-6 years, the buyers has to provide a balloon payment, which the buyer usually pays or refinances with a traditional third party lender who pays it. This is where I seem to not understand something:

How is the buyer able to refinance for the balloon payment with a third party (I'm assuming it's the bank) if the reason he is under seller financing is because he was not able to get a loan through the bank in the first place? Why would the bank agree to refinance now? Is there a possibility that the buyer cannot refinance?

I am a college student and I'm using this summer vacation to try to understand how all this works :D. If you have any other advice for me, I would truly be thankful for it.

Thank you all,

Manuel