Seller Financing

2 Replies

Hello BP Family

After checking to see if I'm qualified for a FHA loan, I've decided to go with Owner Financing for my rental property. I read the book "Real Estate" by the writer Brandon Turner about investing with Owner financing I'd like to give it a try.

But before I even look in to it I need some advice from anyone who tried it or knows how it works good or bad.

Thanks in advance

Lourdemir

@Lourdemir Aime  

Seller Financing or Owner Financing is rare and not talked about by agents to home sellers.

So you want to buy w Owner Financing.

First see a RMLO, or Registered MLO (mortgage loan originator) and fill out this 1003 app

https://www.dropbox.com/s/xd2qn5djkf6z15v/Mortgage...

The most common way to buy (owner occupant) on Owner Financing with little down is a Lease Purchase or Lease w Option.  You will need 3% within 24 to 26 months and go through a home buyer's education class if you are living in it.  Home Buyer Class for California http://ehomeamerica.org/calhfa

If you are an investor, that is different, as the new laws (Dodd Frank, et al) do not apply for NOO, and I would find a seller that wants debt relief on a rental or an expired listing (where a home owner tried to sell with an agent and failed), and you contribute by buying on terms, either sub2, lease option and assign, or on a wrap. These terms are explained on my blog http://www.biggerpockets.com/blogs/3-reiskills-and...

The biggest thing about presenting "terms deals" to sellers is you educate the seller about selling traditionally with an agent vs renting it out w a property manager vs owner financing (sub2, wraps, lease options, etc).

Owner financing deals are negotiated, and not found on the MLS (well rarely found, and that is usually because a real estate investor that is selling on terms that knows more than you, so beware!) :)

Marketing for Motivated Sellers

Free Marketing (takes time and patience)

1. Expireds

2. Listed Houses

3. Landlords

4. FSBOs

5. Wholesalers with >= 80% equity  (have a marketing agreement to give you the lead for a flat fee if you are successful)

6. COIs - Centers of Influence - I like Financial Planners to network with

Paid Marketing

@Michael Quarles  @Jerry Puckett  @Dev Horn  are all pros at paid direct response marketing (post cards, yellow letters, zip letters, etc)

Thank you Brian

Lourdemir

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.