Rental Property Investor · Baltimore, MD · Member since 2020 · 54 posts · 19 votes
Hi
Very interested in this property that is a 3 unit multi family selling for $160,000. Currently 2 of 3 units are occupied. I’m still waiting to hear back from the listing agent for more photos and information on the property but he is dragging his feet.
I want to reach out to the seller myself and ask if they are interested in sellers financing or just want to find the overall motivation for selling the property so we could negotiate something, but only know his name and no other contact information.
I did a real property search and found the seller is out of state and bought the property not too long ago for 93,000. But is selling it really soon for almost double.
Really interested in this, just do not have the capital for the down payment which will probably be $40,000. So what are good ways to negotiate sellers financing?
Well, I'll speak from a seller's perspective and assuming he wants out. The listing broker won't like this, but if you're going to put a minimum down, I would not tell the seller to give you a deed.
I think better way would be (if they go for it), would be a master lease with and option for you to buy at the end of term.
So you agree on $160K as a price. Income = $10K and you give him a master lease at $8K year for 10 years (term). After 10 years you finance it and pay him the $160K (which should be easy, I hope).
Have ever get to watch Brandon's (BP Talk Show Host) video of how he negotiates Seller Finance.
You stated you wanted to contact the seller yourself. From what I was informed by my Realtor, you can't reach out to the seller if the property is listed on an MLS.
Also sounds like you have a motivated seller on your hands...lucky you. Maybe reach out to seller anyway. See why they're selling the property.
Based off their response, that should give you an idea of how much wiggle room you have. You could start of by offering 10% for a down payment and see where the pricing go from there.
Worse thing they say is "No". Remember it never hurts to just ask.
Well, I'll speak from a seller's perspective and assuming he wants out. The listing broker won't like this, but if you're going to put a minimum down, I would not tell the seller to give you a deed.
I think better way would be (if they go for it), would be a master lease with and option for you to buy at the end of term.
So you agree on $160K as a price. Income = $10K and you give him a master lease at $8K year for 10 years (term). After 10 years you finance it and pay him the $160K (which should be easy, I hope).
If it's on the MLS the first route would be to talk to the listing agent. Have a meaningful conversation with them on what the seller's pain points are and then see if you can make an offer that solves those problems using seller financing.