Have you ever done seller financing when buying a property?

[Joe Linares]

Have you ever done seller financing when buying a property? What were the terms? how did it work out for you? Do you have any recommendations for a first timer like me?

[Brandon Sturgill]

@Joe Linares It's essentially the only way I acquire property...residential and commercial...bought a house this week with a purchase money mortgage 60 cents on the dollar...and some duplexes recently 40 cents on the dollar...a 150-year old hotel...and negotiating 24-units currently...

Anyway, the concept is to focus on free-and-clear owners...mom-and-pop with no liens. The physical property has very little to do with the acquisition...this is all about the sellers, meeting individual needs, and creating win-win outcomes. We offer 100% repayment guarantee on every property we purchase...if we default, we'll give the property back...no questions. You need firm systems in place...from inbound and outbound marketing to lead capture and conversion, to site visit and educational materials...the systems support the deal and the appearance of being professional puts people at ease.

To your question, we open with a 10% down payment, shoot for a 36-48 month note, and offer above market rates...usually 7%...always a 30-yr amortization. We also cover all closing costs if the deal is stellar...with the exception of prorated property taxes...we'll even pay real estate commissions if there is an agent involved...

If you want to learn more, feel free to reach out

Blog Post: https://www.biggerpockets.com/member-blogs/5871/84456-close-your-first-seller-financed-deal