Rental Property Investor · Houston, TX · Member since 2024 · 504 posts · 549 votes
(Posting this for the BiggerPockets Investor Brief. Your reply might run in Thursday's edition.)
On this week's BiggerPockets Podcast, Philip Henry said he proposes seller financing on every deal he goes after, and it works about 90% of the time. That's how he picked up a $1.2 million, 31-unit building with the seller carrying 10% and none of his own money in it.
So where do you actually stand? Do you ask on every offer, or only when the signs are there: free and clear, a tired landlord, a listing that's been sitting?
Give me your thoughts and if you've never asked, tell me what's stopping you.
In general debt can increase returns of a property. Seller financing is an extremely useful tool. In general, the terms of the seller financing are much more negotiable and not as strict as the professional lenders. That is why seller financing enables the buyers to get better terms, lower interest rates (which can certainly help in today's environment) and in general easier financing. I agree with Henry and I would ask every time too. In fact this post made me realize that I should be doing it every time.
