Seller Financing

[Edward Thornton]

I have been trying to keep my ears and eyes open for any seller financing deals in my area. I would like to get a seller finance under contract then wholesale the deal. I am hoping that this can be a quick way to move the property and make something in the process. Does anyone the BP Community have any experience with this strategy and has it worked for you?

[Mitch Messer]

Hi @Edward Thornton. Yes, we have sold seller financed deals wholesale to investors. If structured right, they tend to move very quickly. Here's the challenge: I'd say the majority of seller financing deals are created, not found.

You will probably not see many seller financed deals not just because they don't linger, but also because many (most?) professionals (investors and agents) don't know how to put them together in the first place.

So, rather than looking for pre-fabricated deals, I suggest you look instead for:

• sellers who own free-and-clear but have a vacant house in serious need of major repair
• sellers with mortgages where the monthly payment is less than fair market rent, especially when there is little, no, or slightly negative equity
• abandoned homes that have not (yet) been foreclosed on

You'll need a combination of MLS, tax records, and deed records to find and research these types of prospects. However, when you find the right opportunity, structuring seller financing is like creating money out of thin air!

Happy hunting!