Flipper/Rehabber · Toms River, NJ · Member since 2014 · 378 posts · 154 votes
Hi everyone! I’m still fairly new to commercial property investing but I will be putting my first offer in on a self storage property later this week and I have a question. Does anyone know if there is a way to find out if the owner of a property is currently financing the property or if they originally paid all cash? I’m asking because I think I may be able to use this to my advantage when it comes to negotiating. Just wondering if there are any tricks out there with regard to finding this out without coming right out to the seller and asking them directly (which I’d prefer not to do).
Rental Property Investor · Member since 2019 · 304 posts · 462 votes
6y
Whether the seller paid cash or financed the purchase is irrelevant in most cases. The one exception is if the mortgage can be assumed. The seller is not going to adjust his price because he has 100% equity. If he paid cash, he might be in a position to hold seller financing. Most sellers will usually hold a note for no more than 5 years. Even then, you will likely have to pay a slightly higher than market rate.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
6y
@Matthew Rembish
At least in NJ, some/most counties have their record electronically available. So, you can search public records from your home and look up the deeds and mortgages... try the applicable county website and go to the county clerk page or something for doing a public record search
Rental Property Investor · Member since 2019 · 304 posts · 462 votes
6y
Whether the seller paid cash or financed the purchase is irrelevant in most cases. The one exception is if the mortgage can be assumed. The seller is not going to adjust his price because he has 100% equity. If he paid cash, he might be in a position to hold seller financing. Most sellers will usually hold a note for no more than 5 years. Even then, you will likely have to pay a slightly higher than market rate.
Specialist · Lancaster, PA · Member since 2018 · 152 posts · 66 votes
6y
@Matthew Rembish To follow up on what has already been said. You have to look up your local tax assessors website. There will be a page where you can search by name, parcel number etc. Whether or not the property has a mortgage will be on the results page.
Flipper/Rehabber · Toms River, NJ · Member since 2014 · 378 posts · 154 votes
6y
@Zach Quick Hi Zach, I was going to do that but I like to find out as much information on my own as I can. I like to know if they’re telling the truth.
Full time investor · Cincinnati, OH · Member since 2013 · 405 posts · 312 votes
6y
Even better, take the lazy approach and call your banker or title person whom you should have a great relationship with and ask them to get the details. They will often find a ton of info.