How to inquire about the owner financing the deal?

9 Replies

I've recently been doing a lot of reading on the forums about seller financing. I recently viewed a property and learned the seller is recently married and decided move in with his wife. I would love to work out a seller financed agreement but never attempted to pursue a seller with this option.  During our conversation the owner mentioned he didn't rent the property because he doesn't want the headache. The property has been on the market a little over a month and they've received 1 offer that he thought was very insulting. This made me a little hesitant on inquiring about owner financing. However, I've gotten over it and feel ready to move forward after looking at the numbers.

It seems pretty simple to just ask if he is open to owner financing?  Oh yeah, his wife is the listing agent!

I don't have any personal experience with this, but no one else has offered help, so I say, "What's the worst that can happen?  He says No?"  Go for it and good luck!  :-)

Oh, and maybe bring a copy of your credit score to put his mind at ease...unless it's low, then do NOT bring a copy of your credit score.  ;-)

@Jody Schnurrenberger thanks for the response. After chatting it over with my wife we decided the numbers meet our criteria. However, I think it safe to say, you don't know unless you ask!

I'm really intrigued by the seller finance strategy. It's seems to be a great win-win option for both the seller and buyer.

Originally posted by @Anton Taylor :

@Jody Schnurrenberger thanks for the response. After chatting it over with my wife we decided the numbers meet our criteria. However, I think it safe to say, you don't know unless you ask!

I'm really intrigued by the seller finance strategy. It's seems to be a great win-win option for both the seller and buyer.

Anton, you can ask the Seller to view their circumstances as if they are a Bank. Banks are in the business to make money. Why wouldn't the Seller want to achieve the same result? ie. It needn't be about a one-off amount that flows from your account to theirs. It could be about the "free" money that they'd get from the interest that they'd charge! 

The home would actually remains theirs - until their loan to you is paid in full!

Why wouldn't the Seller want to earn all that amazing free money that they'd get, by amortizing a loan to you? Cheers...

@Brent Coombs thanks for the response. That really seems to make sense. Looks like a win-win situation for the seller and buyer!

Originally posted by @Brent Coombs :
Originally posted by @Anton Taylor:

@Jody Schnurrenberger thanks for the response. After chatting it over with my wife we decided the numbers meet our criteria. However, I think it safe to say, you don't know unless you ask!

I'm really intrigued by the seller finance strategy. It's seems to be a great win-win option for both the seller and buyer.

Anton, you can ask the Seller to view their circumstances as if they are a Bank. Banks are in the business to make money. Why wouldn't the Seller want to achieve the same result? ie. It needn't be about a one-off amount that flows from your account to theirs. It could be about the "free" money that they'd get from the interest that they'd charge! 

The home would actually remains theirs - until their loan to you is paid in full!

Why wouldn't the Seller want to earn all that amazing free money that they'd get, by amortizing a loan to you? Cheers...

The property would belong to the buyer.

Buyer mismanages property, stops paying seller, sh*tstorm ensues, amazing free money disappears into foreclosing attorney's wallet.

Hey just providing another perspective!

Originally posted by @Tom Gimer :
Originally posted by @Brent Coombs:
Originally posted by @Anton Taylor:

@Jody Schnurrenberger thanks for the response. After chatting it over with my wife we decided the numbers meet our criteria. However, I think it safe to say, you don't know unless you ask!

I'm really intrigued by the seller finance strategy. It's seems to be a great win-win option for both the seller and buyer.

Anton, you can ask the Seller to view their circumstances as if they are a Bank. Banks are in the business to make money. Why wouldn't the Seller want to achieve the same result? ie. It needn't be about a one-off amount that flows from your account to theirs. It could be about the "free" money that they'd get from the interest that they'd charge! 

The home would actually remains theirs - until their loan to you is paid in full!

Why wouldn't the Seller want to earn all that amazing free money that they'd get, by amortizing a loan to you? Cheers...

The property would belong to the buyer.

Buyer mismanages property, stops paying seller, sh*tstorm ensues, amazing free money disappears into foreclosing attorney's wallet.

Hey just providing another perspective!

Sure, the Seller may decide to foreclose. But they do get to keep the free money they'd already received. Why do you think Banks don't necessarily dread foreclosing, (while still having the choice to hang onto their reclaimed homes)?

What? You think Banks are about to decide they shouldn't be in the home-loan business?...

Originally posted by @Brent Coombs :
Originally posted by @Tom Gimer:
Originally posted by @Brent Coombs:
Originally posted by @Anton Taylor:

@Jody Schnurrenberger thanks for the response. After chatting it over with my wife we decided the numbers meet our criteria. However, I think it safe to say, you don't know unless you ask!

I'm really intrigued by the seller finance strategy. It's seems to be a great win-win option for both the seller and buyer.

Anton, you can ask the Seller to view their circumstances as if they are a Bank. Banks are in the business to make money. Why wouldn't the Seller want to achieve the same result? ie. It needn't be about a one-off amount that flows from your account to theirs. It could be about the "free" money that they'd get from the interest that they'd charge! 

The home would actually remains theirs - until their loan to you is paid in full!

Why wouldn't the Seller want to earn all that amazing free money that they'd get, by amortizing a loan to you? Cheers...

The property would belong to the buyer.

Buyer mismanages property, stops paying seller, sh*tstorm ensues, amazing free money disappears into foreclosing attorney's wallet.

Hey just providing another perspective!

Sure, the Seller may decide to foreclose. But they do get to keep the free money they'd already received. Why do you think Banks don't necessarily dread foreclosing, (while still having the choice to hang onto their reclaimed homes)?

What? You think Banks are about to decide they shouldn't be in the home-loan business?...

This is not about Banks. This is about a private seller. If one deal turns sour on a bank, no biggie. If the only deal a seller-financer turns sour, that's a problem. And depending on how bad the buyer was at managing the property, seller could be taking back an asset in disrepair, tenant goodwill lost, etc.

Like I said, I was simply providing another perspective... the buyer was clearly thinking this is all roses for everybody and I wanted to point out some issues.

@Tom Gimer , of course. I'm not surprised if Sellers refuse to "profit like a Bank". I'm more surprised that people like Anton even want to bother using that sales pitch, when typically, it's only successful if he already does have a large deposit to hand over! (In which case, it reads as if he could easily find a "normal" Lender for the rest).

I would think he'd get more deals (and potentially gain more equity) by just submitting offers that are slightly less insulting than the previous high bid (if the numbers still worked), which he seemed reluctant to try. Cheers...

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