Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
5y
I would get him to agree to seller financing first then negotiate terms after listening to what they want or need.
You could make 3 offers.
All cash wholesale price. You can borrow from friends, family, private money or hard money, then refinance.
Full price of what owner wants with owner financing. Divide the price by month's of term and that will be your payment. Don't mention interest rate if it doesn't come up. You are giving full price in exchange for no interest. You could add a 3, 5 or 10 year balloon if you need to and refinace before this deadline.
last offer could be slightly less than full price. Bank loan with owner carrying back 2nd mortgage for downpayment. Zero out of pocket for you.
Seller could need 30k and you might need to offer some cash to get the deal done.
Find out what the owner needs before setting your offer in stone.
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
5y
I would get him to agree to seller financing first then negotiate terms after listening to what they want or need.
You could make 3 offers.
All cash wholesale price. You can borrow from friends, family, private money or hard money, then refinance.
Full price of what owner wants with owner financing. Divide the price by month's of term and that will be your payment. Don't mention interest rate if it doesn't come up. You are giving full price in exchange for no interest. You could add a 3, 5 or 10 year balloon if you need to and refinace before this deadline.
last offer could be slightly less than full price. Bank loan with owner carrying back 2nd mortgage for downpayment. Zero out of pocket for you.
Seller could need 30k and you might need to offer some cash to get the deal done.
Find out what the owner needs before setting your offer in stone.
Rental Property Investor · Carolina Beach, NC · Member since 2017 · 441 posts · 462 votes
5y
@Chanakya J.
My last 2 deals were owner financed. In both situations I didn’t have to convince the seller to owner finance they already knew they wanted to and had terms in mind. That being said the beautiful part about owner financing is building a situation that best serves both parties. I typically start with “would you be interested in taking payments” and let the owner talk. I buy for cashflow so I like negotiating the lowest payment possible. Purchase price and interest rate doesn’t matter if someone else is paying for it.
Investor · Raleigh, NC · Member since 2019 · 314 posts · 280 votes
5y
I agree with @Joe Prillaman. One of my last STRs was owner financed and the SELLER wanted it that way and asked me if I'd consider it that way. Worked out great for me and seller. I ask nearly every seller if they would consider it as many may already be leaning that way.
My agent is not afraid to ask listing agent/seller if they would consider.