All Forum Posts by: Chris Wakley

 I've done a lot of SF deals, but they weren't advertised that way.  Its a great way to grow when done right with the right seller.

There are also multiple ways to do SF. Some good like a note and deed of trust/mortgage OR some like Land Contracts where you own nothing. Which is this?

Why aren't you negotiating?

if you're forced to take his deal or nothing, then walk.

if you're feeling some kind of social pressure to take a deal you don't want for ANY reason but especially if you think he will only help you because he's making money on you, WALK

sounds like you just don't want to rock the boat which I understand, but that's a bad habit to get into. Rather, negotiate and fight for a better position for yourself ALWAYS and you'll find people respond well.

tell this guy your thoughts, straight up. He's doing seller financing, that's valuable, he's teaching you, that's valuable, but it's not worth buying a bad deal, so negotiate a bit and find common ground. If the guy won't budge, maybe he's not the epic mentor you think he is, or maybe he has ulterior motives, or maybe he didn't buy it at a good deal either and he's not someone you want to learn much from anyway.

It's usually not much of a deal if it is advertised with SF.  Let another sucker bite on this one.

 My best ones have been reluctantly suggested by me, later becoming the sellers idea as they learned more about the benefits of being the bank.

Like 'buying' an advertised rent to own, be extremely vigilant here.

@Chris Wakley,

We had a similar situation, where we were looking to buy some seller financed houses from a guy who was selling off, literately 100 properties, and he was very nice, knowledgeable and we thought he could be a great  resource too... turns out, his idea of "turnkey" and ours were very different.. and his houses were heavily overpriced!     

Business is business. People are only looking out for themselves, so if he's willing to owner finance, it's because he knows he can get more money and do less work-- vs. the MLS where the market will push the price down to account for the repairs needed. Of course he's pushing it as a great buy.. he wants it off his hands, no one sells a house b/c it was easy money and wasn't stress... He might be nice, but he isn't doing you any favors... so I wouldn't do the deal. He's also already lied to you about who pays the water, so IMO I definitely wouldn't trust him.

Sounds like he is a good salesman, and is taking advantage knowing you want to get your feet wet with seller financing. That's my initial reaction.

He lied about the tenants paying the water bill? That's crazy.

If the numbers work, they work. Just do your research and follow your gut.

How do the numbers shake out?  Regardless of who he is or what the scenario is, what are the numbers?  Rent/monthly payments/repairs etc.

So if inspection reports plenty of problem, you don't want to bring it up with him because you could hurt his feelings by hinting to him that you know he lied? 

Your seller should only be your seller. See after sale is closed.

How much over priced? Over priced for the condition or over priced and also in bad condition? Of course the seller was very gracious, he was making a sale. You can, in turn, be very gracious too. Tell him how much you appreciated his time and advice. Ask if you can do something for him, maybe. But do not buy an overpriced fixer to cement a friendship. I think the interest rate is okay for owner finance. But the seller should expect a fair price. His target buyer on craigslist was probably someone with bad credit who will overpay to get a loan and will fix the place up so the collateral rises to surpass the risk of the loan.

I've never even made my first deal as an investor yet. But i do know I would negotiate. Any deal anyone  presents to you as an investor will have some wiggle room if it was presented to you. If the numbers don't look right show him your concerns. An investor (Buyer) tells the seller what he will pay not the seller telling the investor. Stand your ground and voice your Concerns. As far as the knowledge you've gained that's what Bigger Pockets and the other books I've read Refer to as feet on the ground type experience. Which I can't wait to learn But follow your gut feeling, ask questions, run your numbers. If it don't feel right or look right beware the Upsell.. And if you feel bad about walking away from the deal just send him potential Buyers and Maybe even make a few dollars in the deal. Part of me says I shouldn't have put in my two cents but that's what investing is about to me taking the chances, and making the Hard decisions. There will always be another deal. Please don't Bite my head off. I wish you the best Of Luck on your deal and Investing Journey.