What is the best way to ask a seller for Owner Financing?

6 Replies

I have been trying several ways to ask for owner financing and most of the time, I get a "not interested" message from them.

Based on your experience what has provided the most results?

This is what I usually say

  • Will you consider owner financing?
  • Are they willing to take payments instead of a lump sum of cash?
  • Do you need to be 100% cashed out or are you able to provide any financing?
  • Would you consider selling it with terms at the price you want it?

Any suggestions

First you need to find motivated sellers. If your looking on the mls those sellers are looking for a standard buyer so good luck there. You need to focus on the positives of seller financed deals (for the seller) earning interest, being able to have it sold fast etc. you need to find what their motivation level is. Why they are motivated and then come up with a solution for the seller. If you do that you will close deals. 

Thanks @Justin Scarborough  for the comment. I know that motivation is crucial.

Probably I need to phrase the question correctly.

I would like to know what is the best way to ask the question to a seller to do owner financing based on their experience and that have worked in the past.

The one that has work for me the most is

Would you consider selling it with terms at the price you want it?

Hector, I purchased with owner financing. The home was owned free and clear and the seller's motivation was she was tired of being a landlord. I asked her why she was messing with tenants, termites and toilets when she can be the bank. I explained the benefits of being the bank and securing the loan with a property she already knows. Plus you probably will do some upgrading to the property thus increasing the value of her security. Explain the following:

- Dead money_ sits in a savings account with very low interest

- Safe money_ sits in a CD or mutual fund

- Healthy money_ invested in your business

- Wealthy money_ safely lent out with good interest for monthly passive income

Ask them what do they plan to do with the money? Then see if you can offer them enough down payment to take care of their immediate need for cash and finance the rest at a good interest rate. I usually pay around 5% interest, 30 yr amortization with 5 or 10 year balloon.

I actually wrote about this and have a videos explaining various strategies a seller has to sell their home. It should be up and running by this weekend. Check it out


Not everybody is going to take your offer but if you keep asking some will.

Thank @Nuhan Demirkan  for the great response and explaining how you show the owner finance aspect to the seller

I will check your videos as well. Take care

these is a great option to increase the lead pipeline

Give them 2 written offers:

Offer A: Seller Financed:

Offer B Cash:

The mind set of :

A)"Based on the facts, here are 2 ways I can buy your property" is a much stronger place to negotiate from vs. 

B) " Would you consider selling me your property with owner financing?"

Which ever they choose you should make money.

Ellis San Jose, Real Estate Agent in CA (#BRE01855039)
(805) 852-7418