I'm looking to target owners open to selling their property with seller financing.
Has anyone had much success finding seller financing deals using the MLS? I'm a broker and have access to all the listing but I don't get the sense that the agents I'm talking to have much interest in talking to their seller about a seller finance deal.
I have also looked at doing a direct mail campaign to target potential owners willing to seller finance. I'm able to purchase a list of 6,033 owners for $1,000. My criteria used was owners with 50%-100% equity and are absentee owners.
Any idea what I should expect as a close rate? I understand its going to be low as many on the list probably don't even have an interest in selling.
If anyone has used a direct mail campaign for this purpose I would love to hear the results.
@Sam Erickson That sounds like a pretty long list. The response rate I am hearing is 1-3%. You need to be dripping on them 6-8 times. Set your keyword alert for direct mail marketing and see what is being said in the forums.
Part will depend on what terms you'd be offering. Any less than 20% down and I'd think most that are open to seller financing, won't be interested, and I couldn't blame them.
@Christopher Hunter Thanks for the comment. I'll check out what people are saying about direct mail.
@Wayne Brooks Have you done many seller financing deals? Are you seeing that they all want 20% down?
I was hoping for less money down, but I guess it will depending on the seller. In the area I'm looking I could do 20% down but probably could only get a couple properties and I would be out of funds. My hope was with seller financing that maybe I could get 4 or 5 properties. My credit isn't an issue so if sellers are requiring 20% I rather just go to the bank and get the better interest rate. I thought perhaps seller financing could streatch my funds further.
I'm referring to MLS properties, as you mentioned. With these, they have an agent advising them to be cautious, and there will need to be a commission coming out of your down payment. There's not much security for a buyer putting only 10% down, if the loan goes south. I'm sure lower down payments are done everyday, but probably with more desperate, or less well informed, sellers which will usually be off MLS deals.
@Wayne Brooks that makes sense. Hopefully through a direct mail campaign I'll get sellers that are more in a need to sell situation that I can help out by offering a good solution.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
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!