Seller Carry Success

[AJ Wong]

Let's be honest, a lot of investment properties at current valuations don't pencil out. Combined with a more difficult underwriting and lending environment, there are fewer deals to incentivize investors and seller's are waiting longer to accumulate reserves. 

One sales strategy I've had considerable success with throughout Oregon is the utilization of the seller carry, or owner financing. Often the most eligible properties require some capital investment to be highly marketable or desirable and sellers can be more flexible on sales price, due to earning above average rates and interest on their note. 

The transaction is simplified by eliminating a third party lender and the buyer is provided additional leverage to reinvest into the property or elsewhere. 

I've as of recently of this week was able to negotiate an interest only schedule at below market rates for my buyer and above average sales price for the seller. 

An excellent example I'm aware of is a strong cash on cash coastal 5-Plex that is potentially available on a 2-3 year owner carry with +/- $150k down. It should net the new owner $30-35k per year after debt service. 

If you'd like more information or to share your positive/negative experiences with a seller carry feel free to comment or ask questions. 

Happy hunting!