Pre Approval Creative Finance

[Noah Bussanich]

Hello,

I'm looking to buy a seller carry deal. I'm looking on and off market. I spoke with a broker today and they said when I put an offer in, I still need to have a "pre-approval" letter from a lender to the seller. Is this true? 

[Chris Seveney]

@Noah Bussanich

That depends

Some sellers will still qualify you as a traditional lender (they should anyways).

Also you should also want to make sure a third party believes you can afford the home

As an investor myself we are kicking our chops right now at all these “creative finance” deals that borrowers could not get traditional financing on and got some sort of seller financing and they clearly could not afford the home so come end of 2024-2025 we will see all of these defaulted loans on this which I will look to swoop in and buy at 50 cents on the dollar