Owner Financing Question and Examples

[Shawn S.]

So when you guys try and do owner financing, do you ask the seller first if they are willing to consider this option or do you just send an offer their way?

I was wanting to get a better idea of how to structure an owner finance offer. I would appreciate it if I could get some examples of how you would word your offer. The property in question is 45k

[Account Closed]

You'll have to test the waters where you are, but my experience is that almost everyone will balk at the seller financing request. For the most part I've stopped asking about seller financing and just send my offer the way I want it. I either give both options: a cash offer and a seller financing offer. Or just the seller financing offer. When speaking with sellers I'm really listening for motivations and time frame issues.

It really depends on who you are talking to. Some sellers, especially younger sellers, always say they want/need a cash payout. And some really have trouble understanding how an installment sale works. I find an offer in writing that says the amount of cash now and then the amount and number of monthly payments gives sellers something concrete to work with. A lot of people have misunderstandings that they have to pay taxes or liens before they can sell, so I usually explain how I'll be taking care of everything and what their net number will be at closing. I almost always get a quick response from written offers. Also my escrow team has become just fabulous at working with my sellers. They find the easiest and fastest way to get title issues resolved, the docs signed and funds tranferred, no matter where the seller is located. I couldn't do it without them.