How do you convince a seller to do owner financing?

4 Replies

Hey everyone, I am just beginning my real estate journey and have several properties I have identified and will be reaching out to the owners. The only issue is that I do not qualify for a traditional loan. I have the income to purchase a property but I do not have two years worth of W-2 history to back it up.

My biggest question is, what strategies do you all use when convincing a seller to owner finance?

Thanks for the hell in advance!

It's all in the presentation.  There's no "strategy to convince them".  Just put together a presentation with their numbers showing how your offer using SF will get them more money than traditional purchase/financing will.  Make sure you include the interest income, and particularly the greatly reduced taxes and fees on their side.

You don't.  You present the property to someone you know in your community who might be interested in holding a mortgage or even partnering with you on the property. You should also contact private mortgage lenders.  But most importantly, you need to do all of this BEFORE you select a property.  It's a business.  Where's your business plan? Why are you the right person to partner with? What skills do you bring to the table?  How will you pay for a mortgage?  What's the end game?  What's in it for the investor/mortgage holder?

Gotta put some business into those dreams...

Originally posted by @Patricia Steiner :

You don't.  You present the property to someone you know in your community who might be interested in holding a mortgage or even partnering with you on the property. You should also contact private mortgage lenders.  But most importantly, you need to do all of this BEFORE you select a property.  It's a business.  Where's your business plan? Why are you the right person to partner with? What skills do you bring to the table?  How will you pay for a mortgage?  What's the end game?  What's in it for the investor/mortgage holder?

Gotta put some business into those dreams...

If the seller is providing the seller financing, then don't you have to find the property first?  What you are defining isn't seller financing...it's looking for a funding partner.  Not the same thing.