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)

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

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