I have recently stumble across seller financing and it seems to me that it may be exactly what I was looking for. I am not able to get a conventional loan, (just graduate college, so poor work history) but this seems like an option I could pursue now instead of having to wait a year or two to build a credible work history. Am I on the right path? I am still in the research phase but don't want to get stuck there for too long and would like to hear what other people have to say about this type of creative financing.
Oh yes seller financing is great but it's hard to find at reasonable terms. I've offered seller financing to over 100 sellers and only one has taken it. In this market, they can get cash offers at insane prices so waiting to get their money via payments is not very appealing. You would have to target the right sellers.
The allure of seller financing is a facade. Most people like the idea because they don't have the money or credit to get a loan. The truth is that it is very specific and you have to know exactly who to present it to. We have new investors going into pre-foreclosures asking for seller financing because they don't have any money. That's not how it works. Seller financing is for sellers who would prefer steady income to capital gains and don't need or want the cash windfall at once. If you want to find seller financing, your lists should be no-money owed, absentee-owned properties or older owners who own several and bought a long time ago.
@Allan Smith Thank you for the response. What would you consider to be the right kind of seller? I was thinking of going after probates and sellers who just want out of being a landlord.
@Jonathan Greene You caught me, that is exactly why it seems so appealing to me lol. I know patience is the name of the game but if I could get my foot into something now, I would be a lot happier. I will take these into considerations when making my sellers list, thank you for sharing. Now ti just finds a market to invest in as my local market is not beginner-friendly.