I'm looking to make a offer for seller financing, but the listing is on the MLS and I likely don't have time to send a mailer before the property is snatched up. For those of you that do this often, do you typically go through a realtor to make contact, or have another way to reach out? All I have is the owner's PO Box from the accessor's records.
Thanks in advance for your help!
If the property is already listed, then really, your only choice is to go through the Realtor.
Realtors are legally obligated to present offers to their clients so they should present yours. That said, many realtors don't understand seller financing very well and may be skittish so they may warn their seller off.
If the Seller still has a mortgage balance, seller financing is a tough sell as structuring a seller financing deal with a wrap around is complicated! If they own the home free and clear your chances are much better.
One way to get the sellers attention when using a Seller Financed offer is to offer at, or a little above their asking price to get their attention!
Also, I like to show them the difference in the $$ they would receive between a traditional offer where they cash-out at closing and a seller financing deal where they get interest income over a period of time.
Example: If the Sales Price is $150K and they own their home free and clear:
- Conventional Cash + Bank Financing: Seller gets $150K at closing.
- Seller Financing with offer at $160K, $20K down, 6% interest, 30yr Amortization, 10yr balloon: Seller Gets $237.8K over 10yrs
By showing the a really solid offer on price PLUS illustrating how much more they can make over time by offering financing, you might be able to open their eyes to the benefits of offering seller financing.