How to ask for Owner Finance and what are fair terms?

Hi. I’m new here. I would like to contact sellers and ask if they would like to owner finance. Can anyone tell me their experience in asking for owner finance when trying to buy a residential property for rental. Also, what would be considered fair terms?

  1. I have a lot of experience with “asking” for owner financing.
  2. There’s no such thing as “fair terms.” There’s only terms you can negotiate.

I never ‘ask’ for owner financing. I never use the term ‘owner financing.’ Or ‘seller financing’. Owner financing is assumed, as I make my presentation. It’s all about the seller selling his house to me, NOT about financing me. So, everything I say reinforces that notion.

Again, it’s never about extending me credit, or doing me a favor, or being asked to overlook my unfortunate incarceration as an Indonesian sex trafficker. All that would immediately put me in a weak position, no matter the seller’s motivation.

To accomplish this requires several tools. You can review them on my blog.

Otherwise, there’s a million ways to skin a cat. There’s no one way to ask for financing, since it depends a lot on your personal skills, negotiation skills, and the motivation level of the prospect.

Meantime, some will ‘explore possibilities’ with the seller. Other will present a range of options. Others will present multiple offers reflecting terms, or cash, or a combination of both.

Your success practically hangs on your ability to present your offer with confidence. I’m not talking about having staring contests to see who blinks first, or acting cocky, but conveying that you know what you’re offering, and are prepared to explain it, and give reasons for the offer.

Be prepared to walk if the negotiations go sideways. If you can’t overcome objections, don’t beat dead horses. You’ve got about forty-minutes to present your offer, and close. Beyond that, and your ‘scarcity mentality’ hormones kick in, and all of the sudden you’re grinding and begging. Forget that. It’s over. Get out of Dodge. [Come back in six months???]


  • Sellers are liars
  • Sellers want too much

Those are two great reasons to perform a ‘yellow pad analysis’ in front of the seller, before you talk turkey. This is where you define the seller’s net equity by deducting all the costs involved with the sale, coupled with all the ongoing costs based on the average days on market; revealing the seller’s net equity.

Agents never do this with a seller …for a reason, but you do. Add 60 days to average days on market after a buyer is found, because it takes two months for the buyer to close on his financing. My blog covers this in-depth.

The seller is qualifying you for financing, not the bank. So, you must show yourself as responsible, reliable and stable. This is probably the most important feedback I could provide.

I could write pages more, but this should give you some food for thought.

Great information. Thanks much for taking the time to write.

JAVIPA: You mention your blog a couple times. Can you point us to your blog? I’d like to read more. Thanks for the feedback!

Click the globe under my avatar.