Seller Financing Advice

[Charles Masten]

Hello BiggerPockets!

I am currently renting out a house in San Diego, as many of you know the barrier to entry here is so high for those of us starting out. The house I am renting and have been living in for 3 years is owned in full by the owner who bought it back in the 90s. Seller Financing seems like a great option to potentially get into a house hack in my market! What is the best way to approach my landlord and ask if this is something he would be interested in? What are some things I should get together before I ask if he would be open to it?

I know first I need to ask, and then listen to him and what he would like to get out of it or what he needs to get out of it, but as a rookie investor I would greatly appreciate any advice on how to approach this. Thank you so much in advance for your replies, this community is seriously the best!

[Josh Caldwell]

I love creative finance, I know my signature says hard money lender but that is only one fraction of what I really do. I have been teaching creative finance for years. My best trick is to look at the total of payments for a 30 year amortization. On a 300k house it is about 619k. Imagine if you walk up to your landlord and offer him 619k for a 300k house and all he has to do is be willing to do this in an unconventional way.  That way will be governed by a legal contract which will give him the right to take the house back if you stop making payments. Do you think he will be interested in talking to you???  Most people are if you approach them that way. He may balk at 30 years of payments but then you can add a balloon in year X.