Share my Credit Report for Seller Financing?

Question

Hello-

I'm in initial talks with a seller about seller financing. Their agent has asked for my credit report, not because they've requested it, but she thinks it'll be good for the sale. I agree showing my excellent credit will strengthen my case. I said no for now because I'm trying to scale my business and "I have a policy of not pulling my credit on a deal before it becomes necessary". Right now we're just talking. Once they are close to agreeing to terms, I can confirm my credit with a report.

I think I'm watching too much Pace Morby talking about no credit checks, no credentials, etc. hahah. This credit report seems reasonable, just not at the right time yet.

Any thoughts? Do you share your credit report/request buyer's report in a Seller Finance transaction? Is the credit check a regular part of the transaction?

Thanks!

Andrew Kiel · Answer

I think the better point here is IF you decide to give the seller a copy of your credit report, you can pull it yourself (annualcreditreport.com) for free and without a hit to your credit score. The free report does not give credit scores but the point you're tying to make is that you pay your bills timely.

Nathan Gesner · Answer

@Andrew Kiel nailed it. You can get credit reports for free without it dinging your credit rating.

Michael Brattelli · Answer

@Mike Griffin I think I’d do the same thing as you. Come to a meeting of the minds first, then prior to contract signing I would show them. What’s the point of a credit pull if you can’t agree on terms

Juan Lizarazo · Answer

You can just use a recent pull if you bought something recently. Or provide them with at least the credit score which you can get for free from your Credit card, most provide these days the free credit score check. Or use Credit Karma (free, no credit pull). So at least they know what they are dealing with prior to an actual pull.

Ethan Gidcumb · Answer

Hey Mike!

I can understand how you feel about the credit check. During any preliminary stage, I ask for a client's credit score and wait to do an actual credit check until we can make a deal happen. I understand what their agent is talking about but I ultimately side with you on this one.

I hope this helps!

Eliott Elias · Answer

I require credit reports from buyers that I sell my owner finance properties to.

Everyone is different. Some require no credit checks, some do.

Scott Winter · Answer

I believe it is your own rule you are asking us about. There is no rule of when or if you should show your credit. So I'd say do what you need to build the credibility that you need to build with the seller...or in your case agent and seller. Agents tend to know the owner better, so at this point she is your best bet to getting the deal done.

Pace is a jedi master. If you could show your bank account and all your successful businesses, and your TV show and all the other credibility that Pace has, you also might be able to skip the credit review with the seller. Until then, you and I are working these deals however we can to get them done.

Christian Ehlers · Answer

Definitely not a bad thing to have them look at your credit, and I agree showing them a Credit Karma report first is a good start, and if they really feel they need to dig in further they can feel free once their is at least a purchase and sales agreement signed with the overall terms you need. Seller finance is a great option in thsi market so I hope this works out for you

Mike Griffin · Answer

Thank you all. This is very helpful for some perspective compared to what the "gurus" say.

It makes sense they'd ask for it. I'd likely want it too!

Share my Credit Report for Seller Financing?

Share my Credit Report for Seller Financing?

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