I am creating my preferred list to market to people who would potentially be willing to owner finance me their multi family property.
I think there is alot of power in creative investing and I am wondering if there is any key things you fellow investors strive to market to?
Look for sellers that have been trying to sell their property but haven't had much luck in doing so.
A real estate broker can quickly find you listings that have been on the market for a very long time.
Those sellers may be flexible in terms of whether or not they may offer owner financing.
Adrian Chu, Adrian Chu & Associates | Horizon Real Estate | [email protected] | 2064075452 | WA Agent # 107768, WA Lender # MLO-920749
@Roc Pilon The key is to market in a way that those who see your advertisement knows that you will consider seller financing and nothing else. Going this route will only put you in front of people who are willing and able to sell.
Multi family (5 and more residential units) are owned by investors, so they are generally familiar with seller financed transactions. They also understand the financing issues and may be more approachable to financing a deal.
You're looking for two main categories, distressed situations or the tired landlord.
Distressed properties or owner's circumstances:
Distressed properties are those that are not as marketable due to property condition, location, rental performance or that have a higher barrier to purchase, that higher barrier might be higher down payment requirements from local lenders or governmental requirements.
Distressed owners have some reason they need to get out of the business of rentals, the reasons are endless, but knowing as much as you can about your seller can point to opportunities to solve their problems.
The tired landlord is the ready to retire types or those tired of fixing, cleaning and having to be a landlord, a walk to the mail box for a check is more enticing than paying a property manager and having owner's responsibilities.
With any of these, don't forget to understand the tax consequences for a seller with deferred taxable gains, any long term owner pay have a chunk of taxes with a cash sale.
I don't suggest seeking these owners out with direct mail, you should know your local market, know who owners are and approach them individually, the market can't be that big that you can't specialize to the type and location of these properties. Good luck :)
Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com
Look for the pain and offer to reduce or remove it.
Determine if your seller really is a seller, is ready to act now, has the ability to pass title.
Assess if s/he is a starter, estate builder, or "ender". Many will fit the latter category and ought to be open to trading obligations and responsibilities for predictable cash flow and peace of mind.
Some sellers are acting in merely a fiduciary capacity, such as probate executor, administrator or trustee/successor trustee of a trust. Their motives will most likely be aligned with meeting fiduciary duties, satisfying creditors, if any, and accommodating the best interests of beneficiaries.
The dialog ought to be more exploratory with the objective to reveal the major underlying issues for the seller. Be patient and learn power listening skills. You'll make more money listening than talking.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- 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!