How to find seller financed deals, just cold call on these?

Question

I hear of many investors doing seller financed deals, but where do they find them? I'd imagine these are off market properties they cold call on?

I recently bought a property off the MLS but am not sure how and when to ask for seller financing..? I'd imagine the agents dont have an incentive to ask?

AJ Wong · Answer

Howdy,

I recently posted in the Oregon Forum on some tremendous success I've had personally and professionally for both myself, clients and friends with seller financed transactions specifically on the OR Coast. I recently negotiated 5% interest only with 20% down on very quality home on acreage for a client and in the past 3 years have been directly involved in 4-5 seller carried transactions, several for my own personal investment.

Wale Lawal · Answer

@Eric Berkner

Homeowners who offer seller financing often openly announce that fact in the hope of attracting buyers who don’t qualify for mortgages. If you don’t see a mention of seller financing, though, it doesn’t hurt to inquire. However, instead of asking if owner financing is an option, you might want to present a specific proposal. You could say, for example, "My offer is full price with 20% down, seller financing for $350,000 at 6%, amortized over 30 years with a five-year balloon loan. If I don't refinance in two to three years, I will increase the rate to 7% in years four and five."

Good luck!

Doug P. · Answer

@Eric Berkner Seller financing can be found on the MLS but the terms usually suck, high price, high down payment, high interest, interest-only, balloon payments etc. If paying a premium for the privilege of not going to a bank excites you then the MLS will work just fine.

If you want discounted terms you need to become a problem solver. Great deals aren't negotiated in a back-and-forth over minutia like when you buy off the MLS, they're created by solving problems.

Cold calling and door knocking are the fastest and most cost effective ways of reaching them. PPC and direct mail are expensive but also easily scalable.

Wale Lawal · Answer

@Eric Berkner

Finding seller financed deals can also be a challenge. As mentioned, not many property sellers are willing to finance the property themselves. Therefore, investors have to get somewhat creative to find these properties to improve their chances. Below are some top tips on how to find owner financed properties for sale.

1. Real Estate Listing Websites2. Hire a Real Estate Agent3. Check a Public MLS Website4. Locate For Sale By Owner (FSBO) Homes5. Find “For Rent” Signs6. Check Eviction Records7. Network

Read this article for more information https://www.mashvisor.com/blog...

Good Luck!

Patrick Drury · Answer

@Eric BerknerHit the phones and ask sellers if they are willing to do some type of seller carryback or seller financing. I have seen it work on the market, actually. As for the agents being incentivized, the commission would come out of the amount the buyer needs to close. Most likely if it's a 0% down deal, the buyer would still be required to maybe pay closing costs and commissions at closing out of pocket. I have seen seller carry-back deals and those typically just pan out like a normal transaction in terms of an agent getting a commission. There are lots of ways to structure seller financed and seller carry-back deals. These are just what I have seen.

How to find seller financed deals, just cold call on these?

How to find seller financed deals, just cold call on these?

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