How to offer seller financing terms?

6 Replies

Hello all, I'm going to make an offer on a property. I would like to give the seller a few different options. Obviously I know how to offer cash. But how would you offer say $70,000 on a 30 year notes at 3% APR?

@Ethan Bowen   this what I did and usually get a strong response.  Option 2.  I will pay you $106,244.22 followed by 295.12 X 360 payments.  From my experience sellers look only at the big number, which should be your $70,000 cash deal or your $106,244.22 finance deal.

Thought about offering a 2 year seller financing option then going to traditional bank financing after that to cash them out? Kind of sounds like a midpoint option you didn't mention so thought I would suggest but either way you go the only way to ask is to ask, not saying it would be easy. No harm intended. 

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Look at it as if they were investing...

I've pitched that before, I said you will receive an $800 check from every month for the next 30 years, without you having to lift a finger.

This especially works with the middle class more than anything, at least in my experience.

What are you going to do if the seller accepts your terms and then the seller says I need to do a credit check and income verify can you pass the checks?

Joe Gore

Small side note, I would not give the seller too many options, probably no more than two. A confused mind says no every time, so don't load them up with too many possible choices, especially if they're in a tough spot. Just my two cents. Otherwise, I like the way Nixon puts it.

@Sebastian Caycedo  I know how to talk to them verbally, this is just how to word it on the offer sheet. I really like what @Nixon Vayupak  said. I think I'm going to do that. In fact this is what I have drafted so far

Ethan Bowen offers to purchase ______________ for one of the following listed options:

  • 1) $60,000 in one payment due at closing
  • 2) $98,655.34 split into 360 month to month payments.
  • 3)$3,000 due at closing and $83,477.60 split into month to month payments.

@Joe Gore  Good point, this was a rental property for the lseller, I'm sure they will have an idea of the monthly income it will be bringing in. I can also show them my partner's investment portfolio. I think that should be sufficient would you agree? I wouldn't let them run a credit check on me but I guess if they wanted to, I'd let them see my credit report. What do you suggest?