Conversation starters for seller financing

12 Replies

What does everyone use to start and have a conversation with possible seller or owner financing? 

Trying to get some ideas

BP is filled with info on this topic. Here a good article https://www.biggerpockets.com/renewsblog/2016/06/27/creative-financing-create-wealth-grow-portfolio/ or.. "if I could show you how to turn the property into a passive, stress-free money maker, would you want to know?"

@Shawn G Hope

I went to a meetup where a presenter explained how he writes all his offers with 3 offers. All cash, seller finance, and I forget what the third one was now (some sort of a mixture of the two). Could always do it that way.

Originally posted by @Grant Rothenburger :

@Shawn G Hope

I went to a meetup where a presenter explained how he writes all his offers with 3 offers. All cash, seller finance, and I forget what the third one was now (some sort of a mixture of the two). Could always do it that way.

 So like David Greene said in  the No Money, No Deals No Time podcast "I'll pay $65k all cash, $85k if you hold half and $100k if you hold the note at 0% interest. 

I think that is a great way to make the offer but I'm looking for good conversation starters for that to be offered. 

"If I could get you the price you're asking for, would you let me pay you over time?"

It usually stimulates their curiosity, and usually leads to their next question.  "What do you mean?"

Then you get to explain it to them in detail.

Originally posted by @Charles Nguyen :

"If I could get you the price you're asking for, would you let me pay you over time?"

It usually stimulates their curiosity, and usually leads to their next question.  "What do you mean?"

Then you get to explain it to them in detail.

 Charles,

  I really like that. Peaking someone's curiosity usually helps break the ice with people. 

@Shawn G Hope My favorite 1-2 punch:

"Is your house (still) for sale?"
"Would you sell it for what you owe?"

You need a thick skin for this though because most people will think you're a scammer trying to steal people's houses LOL! The thing I like about it is that you don't need to negotiate interest rates and down payments. If they're willing to sell for what they owe it's just a matter of whether their mortgage is worth taking over.

I'll never forget. The very first FSBO I called and asked those 2 questions said: "Hell yeah! It's worth less than I owe!"

Originally posted by @Doug Pretorius :

@Shawn G Hope My favorite 1-2 punch:

"Is your house (still) for sale?"
"Would you sell it for what you owe?"

You need a thick skin for this though because most people will think you're a scammer trying to steal people's houses LOL! The thing I like about it is that you don't need to negotiate interest rates and down payments. If they're willing to sell for what they owe it's just a matter of whether their mortgage is worth taking over.

I'll never forget. The very first FSBO I called and asked those 2 questions said: "Hell yeah! It's worth less than I owe!"

That's really good. Not if they owe more then it's worth. Lol. 

I have pretty thick skin and don't think that will be an issue. I did door to door sales for a cable company and was #1 in my region til I got into a car accident. 

Just make an offer with them financing the deal in the offer, including interest rate, down payment, amortization schedule and (for emphasis), what you'll pay in interest.  After you see what you'll be paying in interest you might have pause (you shouldn't if your numbers work), but the seller won't.  

Originally posted by @Shawn G Hope :

That's really good. Not if they owe more then it's worth. Lol. 

I have pretty thick skin and don't think that will be an issue. I did door to door sales for a cable company and was #1 in my region til I got into a car accident. 

Lots of people will say yes even if they have equity, so it works for all kinds of situations.

Another way to open up a conversation about seller financing is to ask if they have thought about renting the house out. You will find many sellers have had the thought: "If it doesn't sell I guess I'll have to rent it out." That's your opening to offer your 'unique solution' of seller financing.

Shawn,

Getting to know the property owner is very important what is his motivation to sell? Many reasons why someone is selling, find out the why, then you know what way the conversation should go. Your job is to be a problem solver.

@Doug Pretorius

Asking if they have thought about renting it is great. It plants a seed about passive income.  Then you have the ability to offer true passive income. 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.