Some advice concering Seller's assist for a client

2 Replies

Hello my Bigger Pockets friends,

I wanted to pick your brain concerning a buyer client I am working with who has a particular situation.This client is very interested in buying her first home. She takes care of several children and receives a good weekly paycheck. However, it is payed in cash by her own clients, so she doesn't have ample documentation to qualify for a bank loan.

I've been thinking of helping her with a seller's assist and wanted to see if there are some good ways of going about this. There are many homes in my market that sell for 20-30k, plus my client has a 12k down payment already saved.

Thanks in advance.


Are you considering lending your client money to buy the home? You could have a mortgage written up and in the event she doesn't pay you can take her to court and foreclose on her. You should do a credit check to be sure it's a good deal. You're essentially the bank in the deal so you'd have to be sure taxes were paid on time, the house is insured with appropriate limits and coverage, and she is maintaining the property so it does not lose value. It's risky but it could be a good deal depending on your desired interest rate. You would have to claim the interest you receive as income. 

Thanks for the information Rob. Just to clarify, I am working as a buyer's agent on behalf on my client. Therefore, I will be contacting sellers in order to gauge whether or not they are willing and able to do a seller's finance.

The information you gave is useful to know. Thanks!

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