Need help! How to approach someone about seller financing

[Rachel Barrett]

Hello everyone, Hope your day is going well! So I have a neighbor who lives three doors down from me, unfortunately, the man of the house just passed away in December. They have another home, and they are going to relocate to the other house. I am unsure what their plans are for the house down the street from me. I’d like to approach them and discuss seller financing, but I don’t know how to start the conversation.

I was thinking about just going down there with some flowers and sending my condolences, and seeing where the conversation goes from there? How do I approach the family about something like this when they are going through so much? Does anyone have any suggestions/tips/or advice on how to go about making the initial contact?

[Mitch Messer]

Hi @Rachel Barrett and welcome to BiggerPockets!

Seller financing is just another tool in your real estate investor toolkit. It addresses a very specific set of challenges faced by the seller. At this early stage, you don't yet know if your neighbors would even benefit from financing the sale themselves.

It'd be like your doctor telling you "I'm really eager to prescribe you some Zoloft," even before they've had an opportunity to examine you and understand your situation.

So, don't ask the family about owner financing. Just be a kind, supportive neighbor and listen. If real estate does come up, find out if their intent is to sell. If so, see if speed is their primary concern, or whether they need to get top dollar.

Your job as an investor is to help sellers solve problems involving real estate in a way that (generally) is also profitable for you.

Good luck!