I’m new to real estate investing, and I’m trying to soak up as much as I can. I’m really interested in learning more about SELLER FINANCING.
Is there anyone who has experience using seller financing? Are there any tips you can share on how to find the right property owners for seller financing? And does anybody have an example of a seller financed contract I could see?
Love the forum on REIClub.com and all the info I’ve gained from everybody. Hope to be able to reciprocate when I become more experienced.
The banks will look at your credit, income. I think if you are putting 25% down the banks might look at it. The best way to find owner/sellers is deal with a real estate agency.
I’ve been buying owner financed notes and mortgages for years and there are many different ways to set up the deal and different contracts you can use. Once I even bought a pool of ten notes that were all rent to own agreements I spent about seven thousand dollars converting to promissory notes. Owner financing is one of the best ways to do business in my opinion. Mailbox money is the way to go. And if you don’t want the headache of being a landlord and your willing to give up 10% of the monthly rent to a property management company like Remax then you can sit back and collect the rent. Also you have to think of a note as an asset. If you ever have an emergency or find a great investment and need quick cash you can always sell your note for quick money. And if you have a reliable tenant who you believe will pay the mortgage off, you can always sell only five or ten years worth of payments. You don’t have to sell the whole thing. Once the investor finishes receiving his payments then you own the note again. If you have some paper you would like to sell please contact me. I also do near simultaneous closings. In short you find a buyer with decent credit, preferably 629 or higher who can put at least 15-20% down at the time of the sale. This is all done same day by the way. We all walk into the title company where he makes his first payment (he has to make a payment or the government considers it a lending practice…) Once the payment is made we wire the money and take over payments. I often purchase for my own portfolio but am also seeking other private investors that I could sell some of mine to if need be. If that’s you please email me. Good luck kid.
In my experience with owner financing, the seller will only hold the land contract for between 3 to 5 years. After that time, the buyer will need to go to pay off the remainder of the contract (which is usually very close to the purchase price since they have been paying mainly interest).
This makes it attractive to both parties since the buyer should have some equity in the property and the seller gets a payoff without having to wait for the whole amortization period to finish.
HI, IF IM ADVERTISING ON CLIST TO FIND POTENTIAL SELLERS IN A SELLER FiNANCE DEAL, WHAT? OR HOW WOULD YOU PERSONALLY WRITE ON YOUR AD TO ATTRACT SELLERS…