When introducing/ wanting a seller to do 100% owner financing, how should I lay it out, what's an easy way to explain an owner financing deal to a seller?
I've recently been something like this.
Ill give you X amount monthly until property "seasons" - appreciates over time - you will tell me your interest rate - and then refinance in about 3/7 years with traditional loan.
-Obviously it would be organized differently.
What are suggestions to make them say yes?
Cash or terms discussion
Selling with an agent and paying the costs to sell 10 to 12%
Renting out, eviction and damage potential
Owner financing, terms sale, owner netting more money, better resident than regular tenant
Depending on what price point you're considering, and whether or not the seller currently or has recently lived in the property, you may cause them a very uncomfortable tax situation. Recaptured depreciation is due in the year of the sale. The capital gain is also due, but only as the principal is received. So, 100% seller financing might be a great deal for you, but at what risk to the person extending you the credit? Be sure you put them in a better situation than they are in now.
Free eBook from BiggerPockets!
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.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing