How To Get Started In Getting Properties Below Market

How To Get Started In Getting Properties Below Market

Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 94 posts · 25 votes

This is not "No Money Down" but it can come close to that.

There are more sellers today by far, than there are buyers. the reasons are
simple:

1.     Housing prices being what they are, when the interest rate increases, the payment is
more than the bank underwriting amount of 33% allows. Now, what does that mean,
I won't bore you with the calculations, I can do it for you if you're interested.

But suffice it to say your payments would be too high.

2.     People don’t want to give up a low interest rate.

3.     Well, there is a solution that helps both and that is to take over the loan of the seller.
It has been done for years and works very well when done the right way.

4.     There are things you have to do to make it happen, but it’s done every day across the
nation.


If you are considering helping the “lots of sellers and few buyers“ situation
look into seller financing and wraps. That’s the key

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    10h

    John, I think seller financing can be a really useful tool in this market, especially when the seller has a low-rate loan they don't want to give up and the buyer can't make the numbers work with today's rates.

    I'd add that the financing structure needs to be looked at from both sides before closing. With seller financing or a wrap, I'd want the loan terms, interest, payments, existing debt, and responsibilities clearly documented rather than focusing only on how little cash the buyer needs upfront.

    There's also a tax side that's easy to overlook. The interest, principal, basis, and eventual sale can have different tax implications depending on how the transaction is structured, particularly for the seller if they're financing the sale. And of course, I'd make sure the underlying loan documents and lender requirements are reviewed before assuming a loan or wrapping an existing mortgage.

    The best creative financing structure is the one that works for the buyer, seller, lender, and the tax return, not just the one that gets the deal closed.
    Feel free to DM me, I’d be happy to send over a few resources that might be helpful.

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