How to set up seller financing?

Question

William Murrell · Answer

Step one: use the search and read up on the site.  Lots of good stuff on seller financing.  Step two: consider the rate you'd pay if you went to a bank and then offer above that.  CD's, Money Market, etc. are not offering anywhere near what a mortgage is going for right now, so if you offer a premium it's going to be looked on as a good deal.  For instance, if a mortgage is 4.5 % right now and you offer 5-6%, they're not going to find that in many other places right now and you should market it as such.  Don't forget to run your numbers at that interest rate though!

William Murrell · Answer

Well, if it isn't multi family you can definitely perform an evaluation without cap rates.  Once you get into multi family though, you absolutely need it.  There are several ways to evaluate the property in the meantime!  For starters, use your membership!  I see you're a pro which means that you can use the calculator as many times as you'd like.  Have you run a "best," "average," and "worst case" scenario" yet?  If not, stop what you're doing right now and go do it.  If you use good numbers and it makes sense at your "worst," then it's probably a good deal.

Ashton Sharp · Answer

@William Murrell i ran the numbers, using cap rates and I think i have a good offer. someone said earlier if you use cap rates on anything with less than 6 units you either don't know what you're doing, or you are an expert. and i'm no expert, is there another way to evaluate an investment property?