Seller Financing

2 Replies

I am interested in a property that the owner is a retiring investor wanting to get out of the landlording business and into carrying notes.  Also he has an inventory of rentals that he is planning on selling off in the future.

Currently he has two properties for sale that I am interested in, one a 3br/2ba for 78k and the other a 2br/1ba for 55k.  Both of these properties are priced at retail. 

Both would cashflow even at the retail asking price, 3br/$800+, 2br/$600+ rental history. Both properties have been updated with fresh paint and carpet and are truly rent ready.

The owner is asking 15% down on the 3br and 9% down on the 2br.  

I would like to put both notes together and offer something like 12% down total for both and make 1 down payment and only have 1 set of closing costs and 1 monthly payment.

So in this case would paying retail or close to it for the owner carry and "low down payment" be a deal you would consider?  

Is it feasible to believe I could wrap both houses into 1 note?

Is this a deal that you would consider doing?

With the potential for more properties from the owner as he liquidates his inventory, would you take a lesser "deal" now for maybe a "good one" down the road when more trust is built in the relationship?

I would be going from no properties in my asset column to two cashflowing properties to help me build capital, and payoff bad debt. 

Thanks for your time,


You've crossed a great hurdle in the owner agreeing to seller financing. Work out the first deal weighted in his favor, then he will be comfortable working w/you on subsequent properties.