All Forum Posts by: Vince Craig

Don't be afraid to reach out to your trusted Realtor first. He/She will make sure the price is fair. Personally If one of my clients reached out to me with this situation I'd make sure he was getting fair market value and if so, I'd help put the deal together for nothing. Realtors are working with best interest in mind, and an occasional "freebie" is good for business long term. Other then that, Escrow company and lender will help a lot, I would also recommend having the home inspected by an Home Inspector. Remember Discloser Discloser Discloser!  

 I've heard the Short Term Market cooled off quite a bit over the last year or so, wanted to see what you all are seeing in your markets. 

Sounds like they are not interested in carrying a note? 

Is this to hold long term? Is it rented? What are the rents? 

Lots of good insight here. I'll try not to be too repetitive. 

1) Is it possible that the seller would accept a lower interest rate than the market rate? If so, why would they do this? 

In today's market it will help the home sell for more and faster. I just did one were the seller was paid out ALL is equity about 165k, we left the underlining in place at 3.124% on a 5 year fixed. After year 5 we turn the rate up .5% each year for the life of the note. The seller did this because he needed to sell fast and wanted top dollar. We did just that.  

2) Would the seller also accept a lower down payment than 20%? If so, why would they do this, since this increases their risk right? 

Again in today's market homes are setting longer. Sometimes a seller can't be patient and needs to unload. I'm currently Under contract on a deal like this details below... 
Days on market are about 188. 

We are offering 5k under asking. 

5% down. with another 5% down in 12 months 5% fixed with a 5 year balloon.

Seller is paying 6% commission. The seller will make roughly $1500 per month on the carry plus have her big payout in 5 years. We are easing her immediate pain, and still giving her what she needs long term.   

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3) Why would a seller ever agree to this? It seems like a bigger headache to manage a loan? What are some of the dire situations they would agree to doing this?

Here in Utah there are two companies to handle this. Escrow Services and Elite, I would not do a deal without using a service like this.  

4) Would the seller provide me monthly mortgage statements? If I wanted to pay down the principle quickly, is this possible?

The provider that handles the payments will provide statements also. As far as paying down faster, so long as there isn't a prepayment penalty clause in the note. 

5) Would I put the seller down as the mortgagee on my homeowners insurance? Would they also collect escrow for taxes and insurance?

We typically will have the seller keep their home owners insurance in place but change it to a landlord policy. Then have the buyer get a renters policy. The company handling the payments will handle those disbursements as well. 

Hey Bigger Pockets Family. I'm a local Realtor since 2005.  Over the last year I've learned A TON about seller Financing. I'd love to share knowledge with the community AND learn and collaborate with you all!  I look forward to connecting, Let me know if you have any questions or want to share anything, deals, knowledge, or simply want to connect.  I am doing a Zoom meeting to talk about The Power Of Seller Financing in February if you're interested. 

Welcome! 

Brad, for sure depends on your goals, I personally lean towards the Single Family Ranch. What are the locations? Town house sounds like it's in South Jordan... Daybreak area if that's the case, I struggle with the investment opportunity because you're always competing with New Construction and you've got HOA stuff... But it's a cool spot.

Many are struggling to make deals happen right now. Wether you are trying to sell a property or buy more. High Interest rates are making things harder and harder. In this 1 hour course we will learn the power of Seller Financing. We will cover.... 

1. Exactly how it works. 

2. Different types of Seller Financing

3. Give you clear understanding of the risks (and benefits)   

4. Debunk myths and misunderstandings

5. How to buy vs how to sell on Seller Financing

5. Walk through real life deals. 

6. Q and A.  

Join Zoom Meeting
https://us05web.zoom.us/j/88987240791?pwd=MJ70fYIOUbOthE4sLL...

Meeting ID: 889 8724 0791
Passcode: Sell801

@Shay Reynolds have you made any head way on the tiny house development. Looking into it here is Salt Lake City.