Good book for structuring a seller financing deal?

Question

Hello BP,

I keep hearing these stories about people landing big complexes off stellar financing. I have a couple leads and numbers to call. What would be a book or article that breaks down the step by step of what to do. For example: I have a 64 unit self storage place that I know would seller finance. Do I just call a real estate attorney and explain to them what I want to do with regards of structuring the deal? Then they write up a contract? I have so many questions. Also if there is someone on here that has done a deal like this and has any tips I would greatly appreciate it! Thank you all for your help and have a great weekend!

Rolly Weaver · Answer

I’ve done several owner financed and creative financing deals.
the beauty of it is it’s all negotiable—no bank dictates the rates.
And sellers care much more on the sell price and not so much on the interest rate.

One deal. I acquiered a portfolio of properties via lease option purchase. I have two years to refinance the property and am paying 2500 a month with 2200 going to principal.

the most important thing is to sell yourself. And remember that not everyone wants to finance their property, but there are many older people who want to avoid taxes.

Kristopher Kelly · Answer

@Adam Lacey

Hello,

Thank you that’s what I needed to hear I appreciate it!

Sophia Saetta · Answer

Hello,

I know this post is two years old; I just came across your message and am considering buying a business with seller financing. When you mention "sell yourself" are you talking about personality, career experience, or both? Have you ever done a deal with zero down, if so, I would be interested in hearing about some of the details? Also, do you think it is more appealing to offer a set monthly price for repayment or revenue-based repayment?

Thanks

Sophia

Darryl S. · Answer

I am just starting my search for seller finance info myself, I have a tenant that wants to purchase a paid for rental that he lives in. From my limited understanding one important thing you would want to do is follow a template so that the note is sellable in the future. I am hoping that you guys have found some good resources  (since this was posted in Jan 2022) and are willing to come back and update this post with some info. I am not sure where to start... Tks D

Rolly Weaver · Answer

And i don’t know of any books—this stuff isn’t really rocket science, though. It’s all about the agreement you make with the seller and filing either with the county or a local attorney.

Adam Lacey · Answer

Hey @Kristopher Kelly, I'm not sure I have a book recommendation for you. I know Bill Ham wrote one on creative financing, but haven't read it so not sure it answers your main questions.

But yes, once you come to general terms with the seller, you consult your attorney and have them draft up a contract. The sky is the limit as far as what you can include and how to structure it, so make sure you have an attorney with a lot of RE experience so they can guide you and help avoid any critical omissions. Good work locking up a seller financing deal though, that's awesome.

Kristopher Kelly · Answer

@Kristopher Kelly *Seller financing

I hate auto correct some times!

Good book for structuring a seller financing deal?

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