Convincing Seller Financing

[Gaelan Evans]

I've been renting a house for a couple years now and I have noticed a house down the street from me has been vacant for the 4 years that I have lived here. I would like to approach the owner and suggest that they sell the house to me with owner financing. Any recommendations on how to do this?

I have contacted them before and they have said that they plan to remodel it (but it seems unlikely.)  

My current strategy is to bring them all the benefits of selling the property:

- monthly income

- save on taxes (both yearly, and with sale)

-  helping young locals have a place to live

I'm wondering if anyone has any other thoughts on how to go about it

Thanks!

[Randy Rodenhouse]

Benefits for seller are: 

1. Highest Price. There is no doubt that a seller can insist on and receive the highest price when offering flexible owner-finance terms. 

2. Nearly ever seller says he wants all cash, but few need it. What the typical seller wants is the most net cash from the deal.  In many cases, the sale of a property by an installment sale will net the seller more future yield than if the cash proceeds were reinvested.  Also no RE commissions. 

3. Fast closing. Nothing holds up a sale more than new lender financing.  Since most standard real estate contracts contain a financing contingency, you may end up back at square one if your buyer does not qualify. 

4. Seller may not need to spend thousands of dollars in paint, new flooring and landscaping just getting the house ready for the market.

4. Tax Savings. On an installment sale, so you only pay gains to the extent you receive payments each year. This can be particularly advantageous if you have owned the property for several years.  

[Gaelan Evans]

Thank you! I will add those to my list.

[Eliott Elias]

They don’t have to keep paying the holding costs on the property. You can give them a down payment and pay them monthly. It’s like having a tenant, but paying maintenance, taxes and insurance.

[Jessie Russell]

Hello!  Did you ever approach them in regards to the home?  I have some ideas if you want to meet up and talk about it.  Also some ideas on how you can make some money through helping them flip it! Let me know if I can help : )

[Taprena Augustine]

Anyone have an opinion on Owner financing from the seller's perspective when the seller has a mortgage on the property?

[Jessie Russell]

Quote from @Taprena Augustine:

Anyone have an opinion on Owner financing from the seller's perspective when the seller has a mortgage on the property?

Knowing the sellers needs is key in structuring a seller finance. It would actually be considered “Subject To” in this situation. Seller finance is when they do not have an existing mortgage.