Real Estate Agent · Jacksonville, FL · Member since 2020 · 6 posts · 3 votes
Hi all - I am interested in tips for finding a seller financed opportunity or creating one where it doesn't currently exist. Right now, my wife and I's income is tied up in our own home mortgage and helping a family member refinance their own home due to financial difficulty. We really want to find our first investment property, but we will likely find it difficult to get approved for a loan.
I recently listened to a podcast on BP Rookie and the investor found/created a seller financed deal and I feel like this could be the best way for us to go right now. I understand it might not be an obvious options at first and many sellers would not think to do this on their own so it may require some convincing, but I am wondering what others have experienced with this option.
Any tips for how to find FSBOs or seller's who would be interested in financing themselves? Thank you!
Investor · Ann Arbor, MI · Member since 2013 · 178 posts · 225 votes
5y
I use 2 strategies, make full price offers on deals that have sat on the market a long time and ask seller for land contract financing, and the 2nd strategy is mail letters, 1,000s of them offering what you are offering, you will get more calls than you would think.
Investor · Pittsburgh, PA · Member since 2011 · 115 posts · 43 votes
5y
Finding deals can be challenging. One good option is to learn the wholesaling side of the business. This will teach you to locate for off market deals. The more motivated the seller the better chance of using creative financing. MLS properties have an agent, the agent gets a commission and will want to get paid I avoid properties with agents. In my experience two types of people are willing to owner finance properties. The person who doesn't want bothered, cant sell because of issues, or is out of options. The second is a person with enough resources to see the benefit of the interest. I always ask everyone "are you willing to hold the note for insert the rate %? No matter what the deal.
Second be prepared for owning a rental property. If your ROI is too thin it will become a problem. Be prepared to make the payment if the tenant does not. Also hold back a reserve to cover emergency repairs. Leverage is great, being over leveraged and under funded is a recipe for no sleep.
Figure out the best way to legally bind the deal. This will require an attorney. I would make sure to find someone familiar with how to make the deal work in your area. Lease/Option, Owner held Mortgage, etc.
At the end of the day wholesaling may get you in the game and turn profits to purchase and renovate. At the very least youll become a great deal locator.
Investor · Ann Arbor, MI · Member since 2013 · 178 posts · 225 votes
5y
I use 2 strategies, make full price offers on deals that have sat on the market a long time and ask seller for land contract financing, and the 2nd strategy is mail letters, 1,000s of them offering what you are offering, you will get more calls than you would think.