Seller Financing - need advice

[Gregory Fazio]

Hello BP friends,

I am currently seeking out opportunities to buy real estate in north / central Jersey using seller financing but need some help. The reason I am interested in this is because I don't have a ton of cash to put down but I want to acquire more properties even if it means paying a little bit of a higher rate and/or price. 

I imagine this situation works best when buying from another investor who is looking to offload their properties but still have monthly income coming in. However, when dealing with a seller that you know owns the home outright, what is a very simplistic way to explain seller financing, what the process looks like, and the benefit to the seller?

I would love to pitch this to sellers in my area but want to keep it as simple as possible. Anyone have experience with this? Is it even worth trying to pitch it to someone who doesn't even know what it is?

Thanks for any and all input!

[Annchen Knodt]

Hi @Gregory Fazio, I think it's definitely worth pitching seller financing even to someone who doesn't know what it is, you never when it could be the solution they didn't know existed!  I don't yet have much experience obtaining seller financing, but I would think that emphasizing the tax benefits is a big one.  Also, an income stream is something that is likely to appeal especially to folks approaching (or already in) retirement.  I remember hearing some really great seller financing advice on a BP podcast, it was probably episode 13, i'd check it out if you haven't yet!  https://www.biggerpockets.com/...