Hey Everyone, I am trying to get everything together to purpose seller financing to an individual, and I am basically looking to see if anyone has assembled a package of information to show the seller when they make an offer.
A little background. A person reached out to me to inform me she is looking to sell a property she has received from Inheritance after a death in the family. I do have a previous relationship with this person through family members, and they have always encouraged me to buy real estate, as it has treated them well. They are now retired, and no longer wish to manage(they managed prior to the family members death).
I am very interested in the property, and I would like to purpose seller financing to them. I do not think she knows anything about seller financing, so I would like to assemble a binder with info to give her to take home. I have seen mention in many articles items like my personal financial statement, credit report, a real estate related resume, detail sheet describing your team and your capabilities, a Buisness plan, and items like that. I am curious if anyone had any other items they used, or even better, a sample to share. I have found basic offer letters on the file place, but nothing with more detail.
Also, I have noted many clauses that i have found while reading the topics on this form, but if you have any you would like to share, please do.
Thank you in advanced, this community is great.
To propose something you will have to put the numbers together That is, number of months, interest rate, present value ( or what you are paying for it) and monthly payment. Amortize it out and show how much money she can make. Everything else you should have an attorney write it up.
@Dennis Weber , I have done that. I am thinking a little more in depth info on how I run my business might be able to help convince her I am not running a Mom and Pop shop, but running it as a business. Maybe I should just keep it simple and see how she reacts to Seller Financing, and If she reacts well, come in with more info.
I usually start off with a letter of intent (LOI) that outlines 3 scenarios I could do. First is all cash, lowest price. Then seller financing at a higher price, broad strokes - 10% down, market rates, $x per month. Then a lease or master lease option if it's a multi. Higher price still, $x per month in lease payments but taking over management.
If they like the idea of SF, you could go deeper in the weeds with it and give them a simple amortization schedule you can get online. That would be eye-opening. So much is interest, especially early on.
If they say yes, I just give them a standard PSA for my state that the realtors use and open escrow at a title co. As long as they know all the terms, an attorney in their network can draft up the note and deed of trust for about $300.
Give her a warm letter of intent and see what she says @Sal Morello . Tell her why you like the property and maybe how you will take care of it and improve it.
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