How to indicate I want seller finance without spoiling a lead

5 Replies

I have just been given a few leads but afraid to propose a seller finance option.

How do I propose a seller finance option without spoiling the deal?

Anxious buyer


@Tokie Laotan-Brown  I've found from my experience that it's best to go into a negotiation open minded. Don't preset your mind on what you want. You may feel you need owner financing, but if it doesn't meet the seller's needs you may lose a good deal because you went in without an open mind. Find out what they seller needs (wants are good, but needs are what you're looking for). Ask as many questions of proposition as you can. Their answers will point you in the right direction. Good luck. 

Take this with a grain of salt as I am a buy and hold investor and use the mls/realtor :)

I have found that lots of things drive people other than money. We have won many deals with less cash but a strong position in what is important to them. So I would say the key is to see the seller motivation and than structure a great deal for you that meets his desires :) For example, getting a pregnant women an apple when is craving chocolate would not get you bonus points!

An extremely important component of seller financing is building their trust.  In essence, you are asking for the keys to their home/property and promising to pay them later.  Put yourself in their situation, there will be natural hesitation.  As @Mike Nuss  said, you need to learn more about their situation.  Learn all you can and LISTEN carefully to what they say.  The more carefully you listen, the better details you can build into your eventual offer.  Don't rush to discuss owner financing or you will sink the deal.  Build trust, learn all you can about the deal as well as the seller, then decide what is your best approach.

I do a lot of seller financing, I love it.  I tend to gravitate toward deals where this is an option.  I have even started pursuing deals that owner financing at first was either dismissed or not put out as an option because I thought the situation was well suited to an owner hold.  

Throughout the negotiation, remember to build trust and start selling yourself early.  You need to show the seller why YOU are the right buyer for their property.  Good luck!

Oh woow! You guys are the best. Thank you so much for the advice and will take all on board. I knew I made a mistake when I mentioned seller finance in an email.

So greatful! Thanks..key is to win trust.


The initial contact is not the time to bring up seller financing, however, you need to develop report quickly and find those needs, I'd say before you even get too far into the property evaluation if you must have seller financing. Then bring the matter up tactfully with the advantages and solutions to their needs, then go to the property side and strike your deal.

If you hem haw around, do the property side, look at comps and then realize that your needs can't be met, you just wasted your time, wasted their time and you have pie on your face acting like a qualified buyer when you're not. So, get it out of the ways as soon as you can and move on! :)

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