What seller financing examples have you accomplished?

9 Replies

I am looking into doing a first deal utilizing seller financing. What are some of the examples/terms that you have had in some of your deals? Any tips or ways you would have improved the deal? Thank you!

@Trevor Scheiderer

My first property purchased in 2015 selling price was $155k. Appraisal came in at $131k

Instead of dropping the deal owner agreed to owner finance $25k ... 30yrs amortization With a 5yr ballon.

Payments approx $150/mo

I put down 5% on a conventional loan for the remainder. Only $6,500

Fast forward to 2019 property is worth $200k , rents for $1775/mo. I can refinance to pay owner or sell in 2020. I’ll be selling the property to invest in other deals.

@Trevor Scheiderer

I have a SFH rent to own deal right now, the seller was a big investor and felt that she had made her money so was selling off her portfolio. I looked at the last home she owned and asked if she would seller finance since I didn't have 20%. She agreed and I pur6the home for $59k with 12.5% down and $500/mo payments for mortgage and interest. I have a balloon payment due next September and have already found a bank that will count all money paid thus far as the down payment and get a 15 year mortgage on the property when I am ready. I'm only holding off because I currently have a 4% interest rate and I know that no bank can beat that.

I came across a tired landlord and he was wanting a high-ish price so I offered 5% interest only payments with balloon in 15 years.

Opinions may differ on this, but I think you don't hunt for seller financing. Just offer cash and seller financing to every seller worth making an offer to and eventually one will pick OF instead of cash.

@Trevor Scheiderer

I talked to over a dozen banks and credit union and each one was confused by my scenario, I finally talked to a broker at Guild Mortgage and she said she could make it work IF i had all the payment recorded electronically to prove my story. It took me about 6 months of searching.

Originally posted by @Trevor Scheiderer :

@Michael Henry That sounds like a true success story. I am definitely surprised the owner did not agree to lower the price to the appraisal. Was that a multifamily and in what market?

This was a townhouse / condo in south Florida. It was significantly under valued At the time.