How to offer seller financing terms?

Question

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?

Nixon Vayupak · Answer

@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.

Andrew Syrios · Answer

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 · Answer

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.

Ethan Bowen · Answer

@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 farEthan 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?

Account Closed · Answer

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

Jared K. · Answer

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.

How to offer seller financing terms?

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