What is the best seller financing strategy?

Question

Hey all, I'm curious to hear any thoughts about seller financing and the most effective strategy to begin investing. I'm young with little financial resources, but plenty of "knowledge" from books, podcasts, etc. I'm definitely looking to start investing ASAP, and I've decided on seller financing due to those reasons, but now need the connections and knowledge to find deals. I'd need advice not only on what you think is the best strategy, but also how you go about finding the deals. Thank you!

Jackson Mertes · Answer

I think I like it not because I believe I need less money down or it's easier, but because of the additional level of difficulty that comes with trying to get a mortgage at my age and income level. I think that I have a much closer perspective on what I earn and spend on a monthly basis which results in a more accurate prediction of what sort of expenses I can afford on a monthly basis. With that said, the idea of being able to help somebody hoping to retire soon avoid a big tax hit like the one that would occur with selling an asset is definitely appealing as well as, hopefully, the possibility of purchasing an already rented property and removing that stress from the equation. I believe that it is a great way to sort of ease into the industry and get my feet wet in a way that is more controlled and manageable.

Jonathan Greene · Answer

Everyone would like to start with seller financing so that's not novel. If you like it because you think you don't need to be vetted and you need less money down and it's easy, start over. If you like seller financing because you like the idea of explaining the tax savings to old owners who are going to pay large capital gains on their investment properties, learn that and then build lists with 100 percent equity and absentee-owned for 20 years and go to work.