Hello BP, I am currently working on a deal two buy two properties from the same seller. I asked the sellers agent if the seller would be interested in discussing seller financing for the property and he said they would, but assumed I was talking about a land contract situation, which I am not.
My question is: how have people physically proposed to the seller and their agent the idea of a seller financed deal?
In my head I send my offer and terms in the same written letter, along with an explanation of the benefits of a seller financed deal for the seller, and the buyer. This along with my plans for the property as far as renovations and rents expected in a nicely written more people oriented paper than a legal document.
Am I on the right track here, or totally off base? This will be my first time doing this, and don't want to torpedo my opportunity by breaking protocol so to speak; so if anyone has advice or would like to share their proposal (numbers not important) via PM that would be greatly appreciated.
You might ask the sellers agent what the seller will be using the funds for, if you have a strong enough relationship. If he's paying off some huge bills or buying another house, he's probably not interested.
If you can get the agent to say "he's going to stick the money in the bank for retirement" and admit he'll only earn 1% or so there, you're headed in the right direction, and can start to position why seller-financing may be a better place to park his money and earn higher returns.
Also make it super clear upfront the agent will earn his commission on the total price, even if some of the purchase price is financed by you.