Seller Financing... are you for or against? Comment below
New to Real Estate · CA · Member since 2021 · 27 posts · 18 votes
Hello @Account Closed subject to is honestly my most favorite avenue for investing. I like to find homes in Pre-Foreclosure, and turn them in Lease to Buy (Rent to Own) properties. The biggest challenge of course is educating the seller on the benefits for them....especially those in Pre- Foreclosure. I come in and with down payment which is the amount they are behind. Depending on that cost, I may be able to give an additional $1K to sweeten the deal and help them move. The new tenant pays me a down payment which puts money back in pocket and a couple hundred each month until they purchase.
Of course everyone knows about the "Due On" clause which rarely ever happens. When I was newbie, the more seasoned investors who received advice from never faced this with the bank. Can it happen, yes. Will it, probably not as long as you're making the payments on time.
You should check out Bigger Pockets Podcast #13, #84 & #344
HAPPY INVESTING!
Hi Sahaj, I’m my opinion seller financing can be a great way to finance a home depending on the deal. Avoiding origination fees, discount points, and other charges that lenders routinely charge is always nice. Seller financing can usually speed up the lending process because you aren’t having to wait on loan officers, underwriters, etc. I have run into situations where sellers are ready to sell but they don’t want to give up the cashflow, or don’t want to pay a significant chunk of taxes in the year they sell, these concerns can be alleviated with seller financing
Hello @Account Closed subject to is honestly my most favorite avenue for investing. I like to find homes in Pre-Foreclosure, and turn them in Lease to Buy (Rent to Own) properties. The biggest challenge of course is educating the seller on the benefits for them....especially those in Pre- Foreclosure. I come in and with down payment which is the amount they are behind. Depending on that cost, I may be able to give an additional $1K to sweeten the deal and help them move. The new tenant pays me a down payment which puts money back in pocket and a couple hundred each month until they purchase.
Of course everyone knows about the "Due On" clause which rarely ever happens. When I was newbie, the more seasoned investors who received advice from never faced this with the bank. Can it happen, yes. Will it, probably not as long as you're making the payments on time.
You should check out Bigger Pockets Podcast #13, #84 & #344
HAPPY INVESTING!
Hi Sahaj, I’m my opinion seller financing can be a great way to finance a home depending on the deal. Avoiding origination fees, discount points, and other charges that lenders routinely charge is always nice. Seller financing can usually speed up the lending process because you aren’t having to wait on loan officers, underwriters, etc. I have run into situations where sellers are ready to sell but they don’t want to give up the cashflow, or don’t want to pay a significant chunk of taxes in the year they sell, these concerns can be alleviated with seller financing
Thanks for your input! What markets do you invest in and what type of properties are you looking for - large/small MF, etc. ?
Hello @Account Closed subject to is honestly my most favorite avenue for investing. I like to find homes in Pre-Foreclosure, and turn them in Lease to Buy (Rent to Own) properties. The biggest challenge of course is educating the seller on the benefits for them....especially those in Pre- Foreclosure. I come in and with down payment which is the amount they are behind. Depending on that cost, I may be able to give an additional $1K to sweeten the deal and help them move. The new tenant pays me a down payment which puts money back in pocket and a couple hundred each month until they purchase.
Of course everyone knows about the "Due On" clause which rarely ever happens. When I was newbie, the more seasoned investors who received advice from never faced this with the bank. Can it happen, yes. Will it, probably not as long as you're making the payments on time.
You should check out Bigger Pockets Podcast #13, #84 & #344
HAPPY INVESTING!
Seller financing will not help you or hide when you try to do a conventional loan. Sellers generally want an interest rate of return higher than the market for the risks. This can benefit a seller who may have capital gains and reduce it into annual interest
Hello @Account Closed subject to is honestly my most favorite avenue for investing. I like to find homes in Pre-Foreclosure, and turn them in Lease to Buy (Rent to Own) properties. The biggest challenge of course is educating the seller on the benefits for them....especially those in Pre- Foreclosure. I come in and with down payment which is the amount they are behind. Depending on that cost, I may be able to give an additional $1K to sweeten the deal and help them move. The new tenant pays me a down payment which puts money back in pocket and a couple hundred each month until they purchase.
Of course everyone knows about the "Due On" clause which rarely ever happens. When I was newbie, the more seasoned investors who received advice from never faced this with the bank. Can it happen, yes. Will it, probably not as long as you're making the payments on time.
You should check out Bigger Pockets Podcast #13, #84 & #344
HAPPY INVESTING!
Honestly, I'm only investing locally, in Indianapolis, IN and surrounding cities. Born and raised here so I know this area well. We're in a great market right now!
@Sahaj Bhakta Seller financing and sub to are great if you can find a seller who’s open to them. Look up Pace Morby’s videos- he has great videos on all types of creative financing
@Sahaj Bhakta Seller financing and sub to are great if you can find a seller who’s open to them. Look up Pace Morby’s videos- he has great videos on all types of creative financing
Hello @Account Closed subject to is honestly my most favorite avenue for investing. I like to find homes in Pre-Foreclosure, and turn them in Lease to Buy (Rent to Own) properties. The biggest challenge of course is educating the seller on the benefits for them....especially those in Pre- Foreclosure. I come in and with down payment which is the amount they are behind. Depending on that cost, I may be able to give an additional $1K to sweeten the deal and help them move. The new tenant pays me a down payment which puts money back in pocket and a couple hundred each month until they purchase.
Of course everyone knows about the "Due On" clause which rarely ever happens. When I was newbie, the more seasoned investors who received advice from never faced this with the bank. Can it happen, yes. Will it, probably not as long as you're making the payments on time.
You should check out Bigger Pockets Podcast #13, #84 & #344
HAPPY INVESTING!