Real Estate Agent · Raleigh, NC · Member since 2021 · 240 posts · 281 votes
3y
@Charles Johnson - we seller financed a building last year ... and the adjacent lot. The biggest factor in getting my deal seller financed was the seller's desire to avoid the big hit of cap gains. If the seller receives only a portion of the sale price annually, over an extended period of time, then they can fall into a lower income tax / cap gain tax bracket annually, and long term, keep more of what they made in the sale.
For someone headed towards retirement, this also provides them with a consistent source of income over the course of the loan.
If you want more details ... you know how to reach me. If you venture to this side of Raleigh, let me know and I'll by lunch this time!
Trying to learn more about seller financing! Interested in hearing about seller financed deals you've done and how you've structured your deal.
Shoot!
I just closed on an 8-unit seller financed last year. I cold-called the owner and he was willing to sell. I was competing against two other buyers so I called him every day multiple times to make sure I was going to get it.
Our terms were $100k down, $105k 30-year amortization, 5-year balloon, 6.25%apr interest. The benefit of doing this, don’t need to spend 60 days getting a commercial loan and do not need to bother with construction draws.
The downside is we put $100k down and will need another $100k out of pocket for construction. The only reason we did this was to close quickly so we could lock up the deal since it was a really good one.
Real Estate Agent · Member since 2018 · 459 posts · 414 votes
3y
I seller financed a package of 12 homes in Louisiana back in 2019. 0% down. Interest only. Still cashflowed, but had a hard time refinancing out with a local credit union because I was considered risky because I was new. I ended selling them back to the original owner after a year. It was a great deal but I was shifting gears in my local market. It took about 100 phone calls and 99 no's from owners but I just needed one to stick and it made sense for the owner so we went for it. Have no regrets, learned a lot.
Real Estate Agent · Raleigh, NC · Member since 2021 · 240 posts · 281 votes
3y
@Charles Johnson - we seller financed a building last year ... and the adjacent lot. The biggest factor in getting my deal seller financed was the seller's desire to avoid the big hit of cap gains. If the seller receives only a portion of the sale price annually, over an extended period of time, then they can fall into a lower income tax / cap gain tax bracket annually, and long term, keep more of what they made in the sale.
For someone headed towards retirement, this also provides them with a consistent source of income over the course of the loan.
If you want more details ... you know how to reach me. If you venture to this side of Raleigh, let me know and I'll by lunch this time!
@Charles Johnson - we seller financed a building last year ... and the adjacent lot. The biggest factor in getting my deal seller financed was the seller's desire to avoid the big hit of cap gains. If the seller receives only a portion of the sale price annually, over an extended period of time, then they can fall into a lower income tax / cap gain tax bracket annually, and long term, keep more of what they made in the sale.
For someone headed towards retirement, this also provides them with a consistent source of income over the course of the loan.
If you want more details ... you know how to reach me. If you venture to this side of Raleigh, let me know and I'll by lunch this time!
Hey Cory, that sounds like a great deal. Would love to hear more!
I purchased my primary residence with owner finance. $55,000 0 down 1,000 a month+Taxes and insurance. I loved the agreement and would like to do another owner financed in the future.
Interested in hearing about seller financed deals you've done and how you've structured your deal.
Buy or sell- usually 10% down, 6% interest, 30yr am, 5 ish year balloon but sometimes 10 or straight am 24yrs. If you are buying, make sure you own it.
Interested in hearing about seller financed deals you've done and how you've structured your deal.
Buy or sell- usually 10% down, 6% interest, 30yr am, 5 ish year balloon but sometimes 10 or straight am 24yrs. If you are buying, make sure you own it.
Can you elaborate on your statement, "If you are buying, make sure you own it"?