All Forum Posts by: Kyle Buterbaugh

Thank you so much everyone for replying and for all your helpful advice! It is awesome to have a place to come with questions and everyone is so helpful.

I have done a lot of homework on running the numbers, and they look good from both angles. The seller is getting out of the rental business, and from what he told me anyways, is selling simply so he doesn't have to do the work anymore. This leads me to believe that he is the perfect candidate for seller financing if he is willing. 

I want to present a higher offer with the seller financing, and a decently lower offer with the conventional loan. Bottom line to me is the numbers say go to me no matter which way we (seller and I) decide to proceed, but seller financing gives me the opportunity to pursue another property that may want only a traditional loan. 

I am more comfortable with doing a traditional loan for my first one just because I don't know exactly what to do with a seller financing despite doing a lot of research on how it works. Also, because of putting the 20% down up front, my monthly payment longterm is higher. However, my goal is to accumulate as many properties as I can (as long as the numbers are good of course), and I know owner financing doesn't come by as easily or often, so I don't want to miss out on a good opportunity either. 

I am taking a lot of what all of you have said into consideration. As of right now, I am going to present multiple offers to him, but push a little harder on the seller financing just because it seems to be too good of an opportunity to miss out on. I will keep you all updates as I move forward, thanks again!

Hi Everyone,

I am currently in the process of developing an offer to buy a duplex that is for sale by owner. It is listed for $54,900, and I have been number crunching to figure out what is smart for me to offer. 

Now, I asked him about the idea of owner financing at least a portion of the loan. He said it was something he didn't know hardly anything about, but he didn't shoot it down. 

Obviously being a first time investor with not a ton of excess cash at my disposal makes keeping as much money in my pocket a good thing. I am planning on using the profits to continually buy more properties, so that is another appeal to owner financing.

The risks come more into play because a lot of owner financing deals have a balloon or some sort of shorter term life, which leads to either a refinance or a large chunk of money being paid out 5-7 years down the road.

I am seeking some advice on whether to pursue the owner financing option or stick to the conventional mortgage? If you recommend owner financing, how would you recommend setting up a deal to create a win-win for both sides?

Thank you in advance for your advice!

- Kyle