Browsing: Financing Real Estate

Financing Real Estate

One of the great advantages of buying mobile home parks is the ready supply of seller financing. No other form of real estate investment offers as much seller carry, and at as favorable terms — with most of these loans being non-recourse and at below-market interest rates.

So how do you get a seller to finance the mobile home park?

One of the first strategies is to “bond” with the seller. A seller will not offer financing if he is not comfortable with the buyer and their ability to make a success of the park. If they are not feeling good about the buyer, then how can they lock up their investment and their future with them? Clearly, before there can be seller financing, there has to be a period in which the seller gets to know the buyer and develops confidence in their abilities.

Financing Real Estate

Finding financing is one of the biggest challenges for most real estate investors. I previously wrote How to Generate Private Money, where I broke this process into six steps; here I will break down the 5th and 6th steps (See: Steps 1-2, Steps 3-4) of dealing with private lenders.

Step 5: Handle objections, ask for referrals

Goal: Overcome objections to optimize success and get referrals

Solution: Anticipate objections and have a solution to handle them. You will find that the same 2 or 3 objections come up 75% of the time and you have to be able to handle them. Common objections are: What if the deal flops, how is my investment secured, what is in it for me, why real estate, etc.

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