Updated about 4 years ago on . Most recent reply
Trying to get Seller financing!
Hello BP. I am currently looking a deal where the owner has 6 different properties he wants to sell, essentially his whole portfolio. I want to propose him to seller finance me 2 of them. The pros would be obviously less capital gains which might help when he sells the rest of the properties, a steady income for his retirement. What else can I use to sell him on doing seller finance. I am working through a broker as well, trying to get him on board is big too. Would the broker still get paid his commission? I want to offer 10% down on two properties (2-4plex). What would you think is a fair interest rate? How do you work out what the payment will be? If anyone has questions for me or questions I should ask please fire them away. I am hoping to get an offer to them in the next 10 days.
#firsttimers
Most Popular Reply
#5 All Forums Contributor
- Plymouth, MI
Don't ever give a seller choices. All that does is open the door for the seller thinking they can use pieces of each offer. It also just confuses them, and becomes info overload...which leads to all kinds of kaos. Just make one offer at a time. You can always have these other offers in the background,,unseen until you need to pull ONE out.
As far as the seller financing goes, how do you know if the seller CAN give it to you? Do you know if the seller has 100% equity in all the properties? If not, you'll never be able to offer 10% down and get it accepted. The seller would need to pay off any outstanding debt first.