You have a great deal, the seller said he'd help with financing, but not sure how to make that proposal - you know you'd be better if you didn't have to look for HML's or conventional financing -

Can you add to these ideas?

How are you going to structure your offer --? (contract engineering is important to meet intended goals and beyond)

Ideas -----

offer 100% principal mortgage, $1,000 a month until paid (that is a mortgage without interest) ---- The interesting thing about this is that an investor can sell the property subject to the existing interest free fully assumable mortgage and charge an interest to the buyer on money that is owed. (Investors is paying $1,000 a month and receiving interest and principal payments for much more --– what do you think the internal rate of return on that calculation is. Somebody is going to make a ton of money!
Use a subordination clause (allows you to refinance and place first seller mortgage in second position) How this could benefit an investor – cash now from a new first mortgage.
Early pay-off discount clause (if the mortgagee has an offer to sell the mortgage during mortgage life, you get to take that discount) this could make the investors thousands of dollars more from the transaction.
One time fully assumable without qualification clause – gives the investor ease in which to leverage a buyer (who has paid a cash down payment) into a position of buyer of the property.
Stutter clause (Investors can skip one payment a year) isn't it amazing what an investor can ask for and usually get with a seller who is really anxious to sell?
Split notes – one mortgage and several notes secured by that recorded mortgage – this gives seller/mortgagee, leverage to use those separate notes as down payment on other real estate or sell at a discount, use as collateral or given as cash flow gifts to family members.
Delayed payment clause - first payment to be within 6 months - gives investor time to do his thing to the property before having to make a payment.
Same as above – but as investor and buyer arrange to partner with seller – using the notes to control real estate – seller wins big due to investors advance creative and aggressive method of buying real estate at a discount. (all terms must be in writing) Strange to think that the investor becomes a borrower with an equity interest in the mortgage that he owes on.
Offer rolling interest – no interest for 6 months – 2% for 6 months – 3.5 for 6 months ---- whatever you can think of to give you the financial leverage you need.
Substitution of Collateral – if you ever sell the property and you want more cash - DON’T pay off the mortgage – substitution of collateral clause in what will work. We call it walking the mortgage. So, if you have a property with a $100,000 seller financed mortgage and the contract of sale is for $200,000 – normally the mortgage would have to be paid off – unless you substitute it for another property with equal or greater value and equity – so you don’t pay off the mortgage and walk with $200,000 instead of $100,000. So now go out and leverage that $200,000 into more real estate – Pass go – collect $. Roll the dice again.
right of first refusal – you want that discount – have it in writing that you have the right of first refusal – if seller has an offer to sell your mortgage, you have the first right to act on that offer. You benefit from that great discount (now is the time to go refinance).
Unsecured mortgage (use a note instead of a recorded mortgage) or secured by another property (a friend’s house, relative, your other properties) offer an interest or a fee. This could give you a Free and Clear property or one with only a small balance (subject to existing)
Release of Liability clauses if loan is ever assumed by your assignee (if they don't make the payment - you don't have to!

These are just a few of the different ways to control real estate with seller financing proposals.

When you can explain to a seller the benefits of seller financing – how to leverage that financing – what can be done with notes – how to partner with you, sell or use as collateral on other transactions or just sit back opening the monthly envelopes full of payments made out to you. (study the art of word pictures - many years ago I worked for the Dale Carnegie organization - they talked about the value of word pictures - how to put your prospect in that picture - showing him using and enjoying and benefiting from your proposal) Try it.

I like to show sellers that even if they are not getting the up-front cash they expect, the owner financed mortgage and payments they are receiving don’t have to be passive – once the seller has trust in your seller financing proposal - reach your goals is possible - (ALWAYS PUT IT IN WRITING -don’t expect a verbal yes – melt everything down to writing and knowledge of answering seller’s objections – this is a crucial moment in your negotiations. – Take your time. Present it with enthusiasm and conviction – Let the seller know that this is your offer – they are getting close to what they want, but they have to give a little also to meet their selling goals also.)

How do you help ellers want to do business with you?

Sellers are always concerned about - can they trust you, will pay, what if the house gets damaged, how do I know I will get paid, what do I have to do in the event you don't pay me, do I foreclosures, will I lose my money?

Some ideas:

Offer the seller an envelop with 12 post dated check - they don't have to wait for the letter carrier.
Offer to put a deed in liue of foreclosures in escrow with their lawyer - transferring property back to them in the even of non-payment or violation of the terms of the mortgage -
Offer to have monthly inspections of the property by seller
Let them know they will be added to your insurance policy in the event of fire - they get paid off
Offer additional collateral (like a blanket mortgage) - always on a blanket mortgage you should have a release clause after the equity reaches a certain amount - no need to tie up your equity
Provide additional co-signers
Provide your financial statement and a copy of your credit report
Provide your nice guy resume (written testimonials about you from past customers, transactions, your preacher and other lenders, awards, newspaper clippings of you rescuing a cat from a tree, awards from the Boy Scouts) have all this in writing. Don't forget a great picture of you and your 11 children.
Your professional status - Agent, Broker, Auctioneer, CPA, Neighborhood Organizer (it worked for the president) Church official, CCIM, Realtor, Notary

Seller assisted financing is the best loan you'll ever get - no points - no qualifying - no long application forms - no waiting for someone to say OK YOUR ARE APPROVED - or LOAN DENIED! - no disappointments - seller financing will increase your net equity in real estate more than anything in the world.

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