What's the best way to find seller financing and should I tell them about my plan for the house like having it for a rental. Newbie here :)
It's hard to say there's a 'best plan', because I feel like each seller is different.
I think your best process is:
1) Identify their problem
2) Try to help them solve it
Maybe the problem is repair, taxes, distance, disinterest ... maybe they don't have a problem at all (maybe not great candidates for seller financing). You can't just go in guns blazing, you have to offer them something they don't have in exchange for the house that they do have.
Be friendly, helpful, and understanding. Like I said, I don't think the process is as formulaic as "Do A, B, C, Profit!". It will take some thought, and some effort (especially at first), but once you know what to look for, you'll be able to accomplish what you want much more quickly.
Thanks for the advice, did not think about identify their problem. I well diffidently keep that in mind and thanks again for the advice Jeremy and Darren
Make sure that you have a steady number of deal flow and you're going for motivated sellers who are ready to do a deal ASAP.
1. As others have said, find the "pain" first. Then your job is to be the one to solve this "pain" for them. You will be communicating directly to the needs of the seller.
2. Often FSBO's work better or a property that can't get financed in its current condition.
3. I found the best way is to go in is to go with a cash offer FIRST, then when they negotiate (everyone negotiates in real estate) then you back into / counter with a seller carry as a concession. This also could be done after going into contract, when you get your contractor bids that show that there is more work than what the seller anticipated.
So in other words, don't offer it right off the bat, but back into it later if the deal allows it.
4. As a sidenote, make sure that the deal and cash flow of the property allows for you to cover the debt service. I know it sounds like a "duh" but I've seen deals with 100% financing that didn't have the cash flow even after improvements to cover the debt service + expenses + taxes + insurance to make it worth while.
Thanks for the advice Swat. I checked out the letters Frank, really great letters. Going to network with some of the landlords here and pick their brains a little and maybe send some letters out.
I have been studying real estate for a long time and the rich dad books and game and I learned a lot and I have a long way to go. I have been on this site for a short time and I feel that I have a better chance of success. Thanks again everyone.