Listened to Henry Washington and Dave Meyer Podcast #1235 on 5 financing techniques
Listed to Henry Washington's and Dave Meyer's Excellent Podcast # 1235 on seldom used financing techniques. On the third property I bought I used Seller Financing. The former owner was a real estate broker owner and needed some cash to get over a rough time in the real estate business. He had used this property as a rental and he proposed a down payment of about 28% of the purchase price and that he would finance the 72% remainder of the purchase price for 3 years at 12% interest with a balloon payment. (Market rate interest was up to 15% at the time.) I countered with the 72% remainder financed at 9% interest for 15 years with no balloon. He accepted my counter and I was able to get a line of credit for the 28% down payment; therefore the deal was 100% financed. A few months later a house was listed on the same street that had an assumable VA mortgage at below market interest. On that property I got a second mortgage on my personal residence to get the down payment, so it became another investor property with 100% financing. Fast forward to today I just put in an contract on another VA mortgage assumption. The down payment amounted to 4% of the purchase price and the assumable mortgage was for 96% of the purchase price at 3.25% interest fixed for the next 26 years. This was on a house that was new construction in 2022, and another investment property with an assumable mortgage in 2026. Well done Henry and Dave!