Trying to get Seller financing!

5 Replies

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.


Structure multiple types of offers. Different down payments, different rates, etc. Give him choices. He'll know you're serious and may consider!

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.

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Why is the Seller liquidating his portfolio? Knowing the answer to this question is essential to structuring a deal that will work for him. Example, if he is selling to payoff medical expenses or a grandchild's college you will know that you need to have  downpayment large enough to pay that off versus if he simply no longer wants to deal with the hassle of dealing with tenants he may be okay with a smaller downpayment and larger monthly payments. I would also include some kind of balloon payment so they know when they will be receiving the balanced of the loan. It is a psychological thing. 

@Keegan Uderitz

The seller’s cap gain and depreciation taxes won’t necessarily be less. Yes, his taxes get spread out over time but so does the money he receives so not really a big bonus. 
Yes, the seller still has to pay the real estate commission. 

I was with you until you said you are working with a broker and need to get him on board.  You and the seller are the ones that just became broker. 

Your down payments each just increased 3% and you scared your seller... if you are even able to educate both enough to 'get on board'.

WA has 2 different types of SF- A note and deed of trust or a Real Estate Contract.  Each has pros and cons for buyer and seller.  Learn the difference,