How To Ask For Owner Financing

This information is great. One reason sellers will not do seller financing is because they are looking to get money now. Money for down payment on anothe home, money for a car, money to pay off debt. You may be able to ask what they are looking to do with money then see if you can just pay for what they are looking to get into and do seller financing for the rest.
Another idea would be to introduce selling their seller financed note to a private note buyer. There are hundreds of them throughout the state. Lawyers, CPAs and the likes are often the best that will buy notes.

I would have mentions the selling of the note but I thought it may have added to the confusion of the newbies, but I keep in contact with a whole list of people that buy notes and thats a whole other real estate business within itself. Thanks for your input, its always so perceptive.

Hi Anita,

I understand the Owner Financing & why you would ask the seller to raise the price so you have no out of pocket. Is this all under the assumption that the buyer is a qualified motivated seller and has listed the property below FMV of at least 80% or more?

Thank you & God Bless!

It is under that assumption. But there are many other facets to consider so just know as much about the property as possible to you will be on better footing when meeting with the owner. It gives you a little more leverage.

Thank you for making that clear, I appreciate your advice

God Bless

I gotta agree with you. I met the owners of the house I currently own before buying it and they were the nicest people. They left me all the appliances, paid for the home warranty, most of the closing costs, sold me a house full of furniture for $600 (thank God because my furniture didn't arrive for three weeks) AND they showed me how to take care of the pool and run the equipment properly as well as some other things. I wouldn't have gotten any of those extras if I hadn't made the effort to meet them and build raport. It's the key to successful investing in my opinion! They even left me a card wishing me many years of wonderful memories in my new home, that was a first!! Oh I forgot to mention, they also gave me several set of keys, good thing they did because my closing was delayed by another two weeks and we had nowhere to stay so we were able to stay there until it was official. (Not legal but we had NO choice). So this was by far my most pleasant and memorable transaction with rei.

For the back up post Elena

Hi Anita,
Wow! It takes a lot of pressure out of negoiating with the seller. It creates a more relaxed atmosphere. We definitely need to be relaxed in todays sometimes chaotic world. And it sounds simple and straight forward.
And I love how you by-passed the agent by locating the owner through county records (if necessary).

Fantastic!
Thanks.

__________________________________

Michael B

We made an offer on a 4-plex last week and I asked the owner (corporation) to finance it but they turned me down, then I asked them to finance the down payment and they turned me down.

In the end, we accepted their counter offer and we close in three weeks but I am happy we asked and at least attempted to find other funding!!!!

Regards,
Rohn
DeJor Properties, LLC

thanks for the comments, it great knowing that we actually put what we read to work isnt it.

I am new to this site and am wondering if asking for owner financing when a house is listed with a realtor is uncommon? How is the realtor's fee worked into this scenario?

In my experiance with seller financing, the seller usually asks for enough down payment to cover their expences. The seller will need to pay the RE Agents as laid out in their listing contract. So they either pay out of pocket or get enough from the buyer to cover the fee.

Al

Would you look at the house first through the realtor to see if you even like it OR would you contact the seller first to see if there is even a possibility of seller financing as I am pretty sure I have no way to get a loan even though I have an exceptionally high credit score..I don't have a real job. I do have experience..3 other rentals that were homes I lived in and then rented out and great credit but no "real" income per se. Any other suggestions are welcomed as I am new to this creative style of investing in real estate.

If a property is not listed with a Realtor why bring one in? If you use a Realtor on a FSBO (for sale by owner) you add 3-6% additional expenses for yourself. If you have a chance to talk with the owners I would always suggest this.

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Thanks for reposting the information on owner financing. I found the information to be useful and provide some ideas for future transactions. Believe and Achieve! - Joe

This is great. Me and my partner are closing on our first deal, and I asked the owner over the phone for seller financing and at first she said no way. After my partner met with her in person and explained the situation better, well here we are now, with owner financing for a year!

Jeremy

Congratulation's on your first deal! This goes along with the importance of presenting an offer in person. Presence is a powerful tool. It is important be in the position to handle objections, concerns the seller may have. It could be a simple misunderstanding that will sometimes steer a person towards saying no. Continued success..........Lubertha

I got get over this when talking with people. I am not a big talker at all. Anybody else had this problem? How did you overcome it, if working alone?

In some cases this is a good thing to be able to listen to peolpe. You just look for things you have in common to talk about. If someone tells me about their pet, I'll tell them about my cats. When it comes to business, I'm qualifying them. How they could fit in my circle of influence. You can get over the fear by socializing on a daily basis with everyone you come in contact with. Your already doing it by staying on this site and conversating with members. This is a great way to help. Much success to you.........Lubertha

Hi Anita,
I totally agree on insisting to speaking with the owner in person. It is so eay to reject an offer over the phone especially if the seller is not familiar with the strategy. It's always more effective to present an offer in person. Insist that a realtor presents the offer in person and if could I would like to be present. Sometimes it's a simple misundestanding that could cause a homeowner to say no. We are sometimes a very tangilble people. Sometimes it takes painting the whole picture to see the beauty within. Continued success...........Lubertha