RE agents and non-conventional Financing

12 Replies

What has been your experience with residential RE agents in regards to investors and non-conventional financing methods? Mostly seller financing, as this is what I'm interested in down the road. To me seller financing seems like one of the best ways to accumulate SFRs. Are RE agents motivated to find and close Seller financing deals versus conventional bank deals? Is their commission less? How do you work agents into these deals? Where do RE agents fall on your lead generation list when you're maxed out on conv bank financing (I think 4)?

Just trying to learn more about where RE agents fall in my lead generation techniques.

Currently have 1 SFR and closing on my second April 30th, both conventional bank financing. Thanks


Typically, an owner who will do seller financing is not using an agent and therefore not paying a commission. Unless you hire an agent and pay the agent out of you, the buyer's, pocket, the agent makes no money and therefore is uninterested. 

@Zach Adams

Others can correct me if I'm misspeaking but most times you're not going to find SFR advertised as seller financing. Rather you'll find motivated sellers who you offer seller financing to as an option to get creative and take their problem off their hands.

There are properties on the MLS being advertised with owner financing. Generally there is a catch and there are not that many properties being advertised this way.

Commissions remain the same if the down payment is enough to cover the closing costs and commissions.

In our primary MLS there are currently 0 homes advertised as owner financed. Over 5000+ homes available.

@Zach Adams

The majority of agents won't hunt around looking to deliver you seller financed properties. All of the seller financed properties I have accumulated were on the MLS, not advertised as seller carry, 90+ days on the market and free and clear. I'm a licensed agent but I usually use the listing agent to represent me. It gives them more of a incentive to close the deal. I don't throw the seller financing at the owner until I gather my intel about the property and seller. I keep irons in the fire with many MLS properties keeping ongoing communication with the listing agent about the property status and seller. When sellers are selling a property, typically elderly or properties in a trust that have multiple siblings, I find there is a tremendous amount of mental pressure on the seller(s) to move the property. Over time there best option to get the golden sales price they wanted turns into the seller carry option. I'm not afraid to over pay for a property if the terms pencil out.

I present my offers in a written letter prior to a formal offer.  I have uploaded some of my offer letters in the BP fileplace under Letters.

Hope that helps.

Originally posted by @Frank Romine :

@Zach Adams

Very informative. I like the idea of keeping multiple properties on the radar, free and clear, and on the MLS 90+days. Do you have the listing agent notify you if it reaches a certain timeframe, say 120 days or do you stay on top of the age of the listing? Just weighing how much work you do versus how much work the listing agent will do.


I am a Realtor in southern Massachusetts. I think that most of my colleagues are nervous to consider any kind of financing outside of cash deals and lender managed loans. Instead of looking for deals that are advertised owner financing. You should communicate your intentions to the seller and put into your offer seller financing terms. If they bite you've got a deal. Everything is negotiable in Real Estate. You just have to be created and have a healthy level of gall to ask for what you need.


@Zach Adams

I never expect much from a listing agent.  I keep pinging them for updates.  Keep an eye on the over priced listing.  Over priced listing often don't get much attention and can be really discouraging for everyone. I have personally been in the shoes of the buyer, seller, listing agent and buyers agents.  Expired listing can also be another target for seller financing.


@Frank R. "I never expect much from a listing agent. (My experience also) I keep pinging them for updates. Keep an eye on the over priced listing. Over priced listing often don't get much attention and can be really discouraging for everyone. I have personally been in the shoes of the buyer, seller, listing agent and buyers agents. Expired listing can also be another target for seller financing. (But tell the Owner/Seller, right away, that you are not an Agent looking for a Listing, because Expireds are barraged by Agents;-) "

@Mike Hurney

Re reading my comment when I said I "never expect much from an agent" , what I meant was I never expect agents representing me to find seller finance properties and create terms that are favorable.  

Another note is that if a property is listed as seller financing, the terms are almost never favorable to the buyer.  That doesn't mean you shouldn't negotiate.


@Frank R. That's what I meant also.

"terms are almost never favorable to the buyer. That doesn't mean you shouldn't negotiate." No Kidding! Of Course we all negotiate.

Expireds (and FSBOs) You should always let a Seller/Owner know you're not an Agent looking for a Listing, unless you are. They get besieged by Brokers.

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