Seller financed deal advice needed

[Pia Grace Fernando]

Hi,

What are your thoughts on creating a seller financed deal? Is it better to price the property above market value but at a lower interest rate, like 4-5%? Or current market price but higher interest rate?

Thank you!

[Joseph Beilke]

Think about it as a car deal.  When you go into a dealership they never talk price, it's always payment.  Apply the same mindset here, your Cash Flow is based on how much you take in each month verse what you pay out.  As long as the number work for you and your personal goals to increase your assets, who cares what you paid for the property as long as you make money each month.  

NOW....  if you plan is you get out of the property over a shorty number of years then it will be important to pay down your principal to a point that if prices drop substantially you are not upside down when you need to sell.

Work the numbers both ways and exercise your plan over a few different scenarios and see which one work best for you to grow you wealth.  

Good luck!