Using MLS to find Seller Finance Deals

Social Media Lead at BiggerPockets · Phoenix, AZ · Member since 2021 · 40 posts · 10 votes

What are some creative ways to search the MLS for potential seller finance deals? Any filters you recommend? Criteria you look for? Etc.

I have access to the MLS and really want to take advantage of it to find deals and avoid assignment fees to wholesalers.

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Jeff CopelandBusiness Member

Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes

Sometimes you can search the comments fields for the words "seller financing", and some MLS systems even have a drop down field for the types of financing being offered or entertained by the seller:

I just used this out of curiosity and in about 15 seconds found a listing that literally states in the public comments "Owner will hold financing with 20% down - terms to be negotiated."

Perhaps more importantly, it helps to understand when seller financing is appropriate. You can't offer someone who owes $200k on their mortgage $25k down with seller financing (check out https://www.biggerpockets.com/...), so another important piece of homework is to try and figure out how much the seller owes. This info is sometimes available via ancillary MLS systems (such as REALIST), or you can do an old fashioned public records search for mortgages. From there it's often simple enough to infer approximately how much they would owe today.

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Doug Smith
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
The only way I can think of is to filter the search to only cover properties that have been on the market for a very long time, but that usually means you've got a very stubborn seller that refused to budge on price, but that might mean they won't negotiate on financing terms either. There's really no good way that I know of. That being said, there a are a lot of great programs out there to finance investment property if you have decent credit and enough down, you should be able to finance a property that will cash-flow reasonably well.
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Jeff CopelandBusiness Member
Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
3y
Sometimes you can search the comments fields for the words "seller financing", and some MLS systems even have a drop down field for the types of financing being offered or entertained by the seller:
I just used this out of curiosity and in about 15 seconds found a listing that literally states in the public comments "Owner will hold financing with 20% down - terms to be negotiated."
Perhaps more importantly, it helps to understand when seller financing is appropriate. You can't offer someone who owes $200k on their mortgage $25k down with seller financing (check out https://www.biggerpockets.com/...), so another important piece of homework is to try and figure out how much the seller owes. This info is sometimes available via ancillary MLS systems (such as REALIST), or you can do an old fashioned public records search for mortgages. From there it's often simple enough to infer approximately how much they would owe today.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
You can filter financing to owner finance.
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Mason WeissBusiness Member
Realtor · Phoenix, AZ · Member since 2021 · 523 posts · 239 votes
3y
Hey @Account Closed, there is a filter for multiple dwelling properties on the MLS. Below is a snip.

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Brett Deas
CO · Member since 2022 · 588 posts · 426 votes
3y
Back on markets, or high days on market. Or you can also look for properties owned by a trust because that often means the owner died and the kids are trying to deal with it. Giving them an easy solution can be a great way to try and SF a deal.
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Greg H.
Rental Property Investor · Phoenix, Arizona & Arkansas · Member since 2015 · 31 posts · 15 votes
3y
Arizona -ARMLS Search- Residential:
Click,"Add field", down on the bottom of the left menu where you see "Status","List Price", "Type of Dwelling", etc.
Type in the search box, "new Financing"
Click the box beside, "Seller may carry", or maybe "wrap around", if you are searching those as well.
"Seller may carry", search currently shows 201 properties, Active, in Maricopa and Pinal county, not including mobile homes, or land.
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Kevin PaulkPro Member
Rental Property Investor · Brooklyn, NY · Member since 2016 · 219 posts · 174 votes
3y
The majority of the time real estate agents are putting their listings on the MLS. Very few ever suggest seller financing or creative financing at all. With that being said, you have to go out and create the deal from the MLS. It can be done but like what @Brett Deas mentioned you want to look at listings that fell through and are BOM (back on market). Listings that have sat on the MLS for awhile.Look for key words in the description like " seller motivated" and from there you try and entertain a seller finance conversation.
Hope this helps!
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
3y
@Account Closed
The key to finding a seller finance deal is to be proactive, flexible, and willing to do some extra legwork to find the right home with favorable financing terms. While finding seller financing deals may require some extra effort, there are indeed multiple ways to find such opportunities. Let’s go over some of these ways and where to start.

Finding Sellers via Real Estate listing websites
Search for homes on real estate listing websites like Zillow, Redfin, or Realtor. com.

Use the search filters to narrow down your search to properties that offer owner financing. You can also narrow the search field by the size of the deal, amount of money, type of home, and listing service. Look for keywords such as “owner financing,” “seller financing,” “contract for deed,” or “lease option” in the property description. If there is no information provided about financing, you can reach out to the listing agent or home seller to inquire if owner financing is an option. Be sure to create a system for yourself to log your communications with sellers or potential buyers for future reference.

Hire a Real Estate Agent
An experienced agent with in-depth knowledge of the local housing market may be able to find owner financed deals in the area. They may be aware of a motivated homeowner willing to sell their property and offer owner financing. In addition to identifying owner-financed homes, they can negotiate better interest rates and terms with the seller and assist you in completing the transaction. Remember relationships are important.

Check a Public MLS Website
As a realtor, searching the MLS for owner finance deals can be a great way to find unique, creative solutions for buyers and sellers. To get started, log into your MLS account and use the search bar to look for listings that are “For Sale By Owner” or “Owner Financed”. You can also search for keywords such as “lease option” “contract for deed,” or “seller financing”.

Locate For Sale By Owner (FSBO) Homes
A useful approach to locating homes available for purchase through owner financing is to drive around a desired neighborhood and look for “For Sale By Owner” signs. If a property captures your attention, you can reach out to the owner and inquire about the possibility of owner financing. This tactic proves more effective during a buyer’s market, where the seller has difficulty selling the property, and it has been on the market for an extended period.

Common Types Of Seller Finance Agreements
Look for “For Rent” Signs
While “For Rent” signs may not directly indicate owner financing, they can be a good indicator that the property owner may be open to creative financing options. Rent-to-own or lease-to-own agreements can be a form of owner financing, where the buyer rents the property for a period of time with the option to purchase it at a later date.

Check Eviction Records
An effective approach to identifying landlords who may be interested in owner financing is by reaching out to those who have faced tenant-related challenges and the demanding eviction process. Accessing public eviction records at your local courthouse can help you locate such landlords. Once you have identified these property owners, you can initiate contact to inquire about their interest in selling their property through seller financing.

Check Buyers/Investors Network
Networking is an effective means of discovering homes available for purchase through owner financing. Attending local real estate investor meetups and other industry-related events provides an opportunity to meet motivated investors looking to sell their property. You can inquire if the property can be purchased through owner financing.
All the best!
[email protected]832-776-9582 Podcast Guest on Show #469
NETWORTH BUILDERS5236 Reviews
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Account Closed
OP
Social Media Lead at BiggerPockets · Phoenix, AZ · Member since 2021 · 40 posts · 10 votes
3y
Quote from @Greg H.:

Arizona -ARMLS Search- Residential:
Click,"Add field", down on the bottom of the left menu where you see "Status","List Price", "Type of Dwelling", etc.
Type in the search box, "new Financing"
Click the box beside, "Seller may carry", or maybe "wrap around", if you are searching those as well.
"Seller may carry", search currently shows 201 properties, Active, in Maricopa and Pinal county, not including mobile homes, or land.

Thank you very much!
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Account Closed
OP
Social Media Lead at BiggerPockets · Phoenix, AZ · Member since 2021 · 40 posts · 10 votes
3y
Quote from @Wale Lawal:

@Account Closed
The key to finding a seller finance deal is to be proactive, flexible, and willing to do some extra legwork to find the right home with favorable financing terms. While finding seller financing deals may require some extra effort, there are indeed multiple ways to find such opportunities. Let’s go over some of these ways and where to start.

Finding Sellers via Real Estate listing websites
Search for homes on real estate listing websites like Zillow, Redfin, or Realtor. com.

Use the search filters to narrow down your search to properties that offer owner financing. You can also narrow the search field by the size of the deal, amount of money, type of home, and listing service. Look for keywords such as “owner financing,” “seller financing,” “contract for deed,” or “lease option” in the property description. If there is no information provided about financing, you can reach out to the listing agent or home seller to inquire if owner financing is an option. Be sure to create a system for yourself to log your communications with sellers or potential buyers for future reference.

Hire a Real Estate Agent
An experienced agent with in-depth knowledge of the local housing market may be able to find owner financed deals in the area. They may be aware of a motivated homeowner willing to sell their property and offer owner financing. In addition to identifying owner-financed homes, they can negotiate better interest rates and terms with the seller and assist you in completing the transaction. Remember relationships are important.

Check a Public MLS Website
As a realtor, searching the MLS for owner finance deals can be a great way to find unique, creative solutions for buyers and sellers. To get started, log into your MLS account and use the search bar to look for listings that are “For Sale By Owner” or “Owner Financed”. You can also search for keywords such as “lease option” “contract for deed,” or “seller financing”.

Locate For Sale By Owner (FSBO) Homes
A useful approach to locating homes available for purchase through owner financing is to drive around a desired neighborhood and look for “For Sale By Owner” signs. If a property captures your attention, you can reach out to the owner and inquire about the possibility of owner financing. This tactic proves more effective during a buyer’s market, where the seller has difficulty selling the property, and it has been on the market for an extended period.

Common Types Of Seller Finance Agreements
Look for “For Rent” Signs
While “For Rent” signs may not directly indicate owner financing, they can be a good indicator that the property owner may be open to creative financing options. Rent-to-own or lease-to-own agreements can be a form of owner financing, where the buyer rents the property for a period of time with the option to purchase it at a later date.

Check Eviction Records
An effective approach to identifying landlords who may be interested in owner financing is by reaching out to those who have faced tenant-related challenges and the demanding eviction process. Accessing public eviction records at your local courthouse can help you locate such landlords. Once you have identified these property owners, you can initiate contact to inquire about their interest in selling their property through seller financing.

Check Buyers/Investors Network
Networking is an effective means of discovering homes available for purchase through owner financing. Attending local real estate investor meetups and other industry-related events provides an opportunity to meet motivated investors looking to sell their property. You can inquire if the property can be purchased through owner financing.
All the best!

This means a lot, thank you for your in-depth assistance!
0 Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
3y
Quote from @Account Closed:

Quote from @Wale Lawal:

@Account Closed
The key to finding a seller finance deal is to be proactive, flexible, and willing to do some extra legwork to find the right home with favorable financing terms. While finding seller financing deals may require some extra effort, there are indeed multiple ways to find such opportunities. Let’s go over some of these ways and where to start.

Finding Sellers via Real Estate listing websites
Search for homes on real estate listing websites like Zillow, Redfin, or Realtor. com.

Use the search filters to narrow down your search to properties that offer owner financing. You can also narrow the search field by the size of the deal, amount of money, type of home, and listing service. Look for keywords such as “owner financing,” “seller financing,” “contract for deed,” or “lease option” in the property description. If there is no information provided about financing, you can reach out to the listing agent or home seller to inquire if owner financing is an option. Be sure to create a system for yourself to log your communications with sellers or potential buyers for future reference.

Hire a Real Estate Agent
An experienced agent with in-depth knowledge of the local housing market may be able to find owner financed deals in the area. They may be aware of a motivated homeowner willing to sell their property and offer owner financing. In addition to identifying owner-financed homes, they can negotiate better interest rates and terms with the seller and assist you in completing the transaction. Remember relationships are important.

Check a Public MLS Website
As a realtor, searching the MLS for owner finance deals can be a great way to find unique, creative solutions for buyers and sellers. To get started, log into your MLS account and use the search bar to look for listings that are “For Sale By Owner” or “Owner Financed”. You can also search for keywords such as “lease option” “contract for deed,” or “seller financing”.

Locate For Sale By Owner (FSBO) Homes
A useful approach to locating homes available for purchase through owner financing is to drive around a desired neighborhood and look for “For Sale By Owner” signs. If a property captures your attention, you can reach out to the owner and inquire about the possibility of owner financing. This tactic proves more effective during a buyer’s market, where the seller has difficulty selling the property, and it has been on the market for an extended period.

Common Types Of Seller Finance Agreements
Look for “For Rent” Signs
While “For Rent” signs may not directly indicate owner financing, they can be a good indicator that the property owner may be open to creative financing options. Rent-to-own or lease-to-own agreements can be a form of owner financing, where the buyer rents the property for a period of time with the option to purchase it at a later date.

Check Eviction Records
An effective approach to identifying landlords who may be interested in owner financing is by reaching out to those who have faced tenant-related challenges and the demanding eviction process. Accessing public eviction records at your local courthouse can help you locate such landlords. Once you have identified these property owners, you can initiate contact to inquire about their interest in selling their property through seller financing.

Check Buyers/Investors Network
Networking is an effective means of discovering homes available for purchase through owner financing. Attending local real estate investor meetups and other industry-related events provides an opportunity to meet motivated investors looking to sell their property. You can inquire if the property can be purchased through owner financing.
All the best!

This means a lot, thank you for your in-depth assistance!

My pleasure!
Always happy to share my knowledge and experience.
Keep learning and growing.
Good luck!
[email protected]832-776-9582 Podcast Guest on Show #469
NETWORTH BUILDERS5236 Reviews
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Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
3y
Hey @Account Closed - as others have pointed out above, you could just put in a filter into your MLS to narrow down your search. In my experience, this is a hit or a miss because some sellers that MAY be open to seller financing don't have the option marked in their listing information because the listing agent wasn't thorough.
You could also do a keyword search. E.g. search listings, and put in a word filter that is "contains = seller financing"
1 Reply
Account Closed
OP
Social Media Lead at BiggerPockets · Phoenix, AZ · Member since 2021 · 40 posts · 10 votes
3y
Quote from @Kevin Paulk:

The majority of the time real estate agents are putting their listings on the MLS. Very few ever suggest seller financing or creative financing at all. With that being said, you have to go out and create the deal from the MLS. It can be done but like what @Brett Deas mentioned you want to look at listings that fell through and are BOM (back on market). Listings that have sat on the MLS for awhile.Look for key words in the description like " seller motivated" and from there you try and entertain a seller finance conversation.
Hope this helps!

I appreciate this bro!
0 Reply
Dani Owens
Member since 2023 · 16 posts · 6 votes
2y
@Account Closed It’s been a while since you posted your question. It’s a great question! Which method has been the most effective for you? Have you found any of the suggestions to be useful? I’m looking for seller finance deals as well and would love to know how to find them. Thanks.
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