Seller Finance Stalking

[Shannon McKenna]

Hey Bigger Pockets Family!

I recently posted about not being able to get conventional financing because I cannot prove "stable income" (I have a pretty unconventional job/life style. But I have solid credit, and a good chunk of change for a down payment.)

However, I am still searching for houses, KNOWING that if I find the right deal, I'll find the money. 

The other day, I saw a house where the seller is offering financing, however, I still need to be pre-approved for a conventional loan before I make the offer.

The owner is an investor, never lived in the house, and I want to know more about her. Is it totally uncouth to go to the courthouse and find the records to hunt down this woman, explain my situation, and try to hear hers? Are there better ways to reach her that don't make me look like a stalker? What do you all think?

[Jeff Stephens]

Hi @Shannon McKenna, thanks for your post! First, I want to commend you for your entrepreneurial approach to making something happen here! I agree with @Travis Dawson's comments, and want to add a couple things.

With some diligent effort, you can probably learn a lot about her through searching online. I often find interesting little factoids by just using Google and Facebook to look people up.  For instance, is she listed on any non-profit boards?  Has she written any letters to the editor newspapers, etc? 

The other thing you can do is be proactive, and choose to not take the "bank-approved" requirement literally.  You could prepare your own "due diligence" packet of borrower financial information to submit with your offer.  This might include a cover letter, your resume, your recent tax returns, bank statement, credit report, etc.  In other words, you're basically proactively giving her all the same type of info a bank would ask for, and acknowledging "I don't have a conventional bank pre-approval letter, but based on this information, you decide for yourself if you feel I'm credit-worthy." You might be surprised to find she may consider this more than you expect.

Last but not least, one other little [sneaky] trick of the trade would be to get a pre-approval letter from a hard money lender. It's not a "conventional" pre-approval, but it may serve the purpose for you.  

On a side note, ultimately I believe you'll be more effective in your efforts to buy properties with seller financing if you develop the ability to find deals that are off-market.  You'll have infinitely more ability to connect with the seller, get to know them and their goals, help them get comfortable with you, and negotiate terms directly.  I'd recommend learning to do your own marketing, to tee up these opportunities. 

GOOD LUCK!