Seller Financing - From the Seller Side
Hi all!
I've been getting a ton of investors looking to do creative financing. I wanted to get a seller's perspective on seller financing. It's also something I've been exploring as a seller/owner of multiple properties. Here's are some questions for you, the seller:
-How are you qualifying the buyers? What do you want to see from them financially? Are you using a 3rd party to qualify the buyer?
-What would motivate you to do seller financing?
-How are you setting up the payments? I know title will do a lot of this.
-How do shore up the risks? Whats your plan when the new owner stops paying?
I think this will shed light on things not talked about much. Also, this will be valuable for both sellers and buyers looking to do seller financing!
Most Popular Reply
I usually require minimum 10% down. If a buyer can bring 10k or 15k or 20k to the table they are almost NEVER going to stop making payments. They dont want to walk away from 15k. If they do, there is a foreclosure procedure.
Usually payments and escrow goes through a 3rd party servicer so that you dont have to worry about all that accounting.
What motivates me is the income that is coming in for the next 20 or 25 years without any hassles. Every 15th or 20th of the month a wire transfer hits my bank with $621 or $835 or $1632 and a few others. Its kinda like my retirement. This is what allows me to go on vacation and still make money every month even when I am not working for weeks at a time.