Rental Property Investor · Grand Rapids, MI · Member since 2018 · 18 posts · 6 votes
I've had my agent reaching out to many sellers over the past 2 months with only 3 of them saying they are interested in seller financing and none of them working out for other reasons. Looking for creative ways to land more deals!
Background: bought my first deal 2 months ago as owner occupied duplex and have been turned off by the banks' restrictions, fees and regulations on buying strictly investment properties. Looking to get into properties with only 10% down instead of conventional. Main constraint is limited access to affordable capital. Let me know your thoughts!
I use this tool on all my negotiations and have actually been able to convert many cash only sellers, to owner financed deals.
What I try to get them to focus on, is that the market will never be able to deliver the money, that an owner financed deal will offer. I point out the 10s of thousands of dollars collected interest, rather than the thousands they get to pay a realtor, or the discount for all cash. I will actually calculate that number, while on the phone. This way it becomes a real number for them.
When I get this is my best price, is tell them I will beat that number, by 10-15K. Without fail, there is always an immediate pause, as they do not know how to counter that. They always presume I am going to low ball them, until I don't. This will always open up the conversation for me, then I just have to close the deal.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y
Pray...
In all seriousness though you aren't going to convince someone into owner financing for the most part so they either want it or they don't. I wouldn't take up too much more of your realtor's time with calls it is a very high rejection rate in most cases, you may be better off with your own marketing campaign.
Specialist · Atlanta, GA · Member since 2014 · 179 posts · 100 votes
6y
Instead of having your agent reach out to many sellers asking them if they are interested in seller financing, have your agent search MLS with keywords (e.g. Owner Financing) in the listing.
I use this tool on all my negotiations and have actually been able to convert many cash only sellers, to owner financed deals.
What I try to get them to focus on, is that the market will never be able to deliver the money, that an owner financed deal will offer. I point out the 10s of thousands of dollars collected interest, rather than the thousands they get to pay a realtor, or the discount for all cash. I will actually calculate that number, while on the phone. This way it becomes a real number for them.
When I get this is my best price, is tell them I will beat that number, by 10-15K. Without fail, there is always an immediate pause, as they do not know how to counter that. They always presume I am going to low ball them, until I don't. This will always open up the conversation for me, then I just have to close the deal.