Hey guys so this is my first post!
I’m going to be purchasing my first property within the next year and am super excited to get started, it’s been a long dream that I just never took action on.
I love the idea of creative financing and especially seller financing!
So I have a friend that I did some work for last year and he has some properties and he’s looking at getting rid of some of them so that he can take the money and just go travel or do something else with it.
The tenant that is in the one we discussed is a long term tenant with no plans to leave.
He’s wanting around 60k for it and gets about 750 a month in rent from tenant. I didn’t mention anything to him about seller finance, because I would like to research the property a bit more and get my own idea for numbers. So he is sending me the address later tonight.
Anyway, a concern I have currently is it doesn’t meet the 2% rule, market depending I might be able to start raising rent but that’s for when I have more info.
The question I have, is how do I bring up seller financing without sounding needy? Tips on highlighting the wins for him such as no capital gains and such?
@Kurt Newton the 2% rule is essentially dead in most markets. As for seller financing the question I have for you is do you need it? If a bank loan will work just fine that is probably the better and cheaper option for everyone. If you do need it just ask, most people aren't going to be convinced to seller finance they either will or they won't, and if you need it to purchase the property the entire deal may hinge on that question so it needs to be asked.
When you're presenting offers to sellers, just be matter of fact (not hard sale). Don't feel or sound needy. Be relaxed and take YOUR emotion out of it. Just have a relaxed conversation. It's always good to point out the benefits ("wins") of your offer to the seller.
Remember, you're trying to find out their problem and provide a win-win solution.
Might be good to use the 3 offer technique. Look that up if you don't know what it is.
It may take you a little while to feel comfortable talking to and making offers to sellers, but it get's easier the more you do it.
Simply ask. You usually have a number in mind ahead of time, but this is not a requirement. I got a number of seller carry loans at the the beginning of my investing journey simply by asking the seller if they would, “ take payments”.
@Colton Fairchild thanks for the link