I am considering proposing seller financing to a homeowner who inherited a property from their mother. I marketed to this owner in hopes of making an offer and wholesaling the property, but after speaking to the owner, I get the sense that he won't sell at a discount. He has indicated that the property needs a new roof. I'm not sure what other major issues the property has, but I should find out on Monday when I get to see the inside.
Any ideas or thoughts on a strategy to acquire this one if a wholesale is out of question? I totally realize that at the end of the day, there may in fact not be a deal there.
Prior to viewing, look at comparative values. Know your numbers going in. In order to wholesale, you must really buy LOW. Have an exit strategy. Rehab fast ( and reasonably).
Let Seller name his price first.
If Seller isn't cooperative, leave your written offer. He may change his mind.
Key factor: Motivated Seller. If he isn't motivated, WALK. Never be more motivated than Seller.
Your price? Then, My terms.
Your terms? Then, My price.
Your seller needs to understand that you're interested in buying but are not attached to his house. The house will have a job...to create rental income for you. The only reason why you would taken over husband house with all its problems, tired roof, etc., is if the house will some day provide income.
Since you are looking at other rental house machines your would-be seller ought to know how the most secure place he can keep his profit is by accepting a note backed by the equity in the house that he knows do well.
It's an installment sale because he is selling you thus house on terms that you both agree on. It is NOT a loan, since he is not putting cash in your hands.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!