When you buy real estate with Seller Financing you don’t need much cash, you don’t need bank loans, and you don’t need private lenders. Most sellers who sell with seller financing will not even ask about your credit.
The down payment, when buying with seller financing, is usually 3% or less. I have bought many properties with seller financing and nothing down. Plus you don’t have any loan fees or points.
Your payments can be structured based on what the house can afford. You can often buy with 0% financing or rates which are much lower than you would get if you had to get financing from a bank. The terms are whatever you and the seller agree to.. like $500 per month for 300 months.
When you buy with seller financing, you can usually close in 1 to 2 weeks. There is no loan application or lengthy underwriter process with lots of last minute requests for more information.
When you buy with seller financing, if you are not going to occupy the property, you completely avoid Dodd- Frank rules. No qualified mortgage broker is needed when the seller was an owner occupant or if they are only selling one property with seller financing in the year. If you plan to occupy the property, you can still avoid Dodd-Frank rules if you are buying from an owner occupant.
Here are the four best ways to find seller financing opportunities:
FSBO web sites – Sites like www.ForSaleByOwner.com or www.BuyOwner.com are filled with homes being sold by owners. Each website offers access to the seller’s phone number and a way to email them directly. If you focus on properties which have no furniture or very little furniture, these sellers will be more motivated and you will have a much better chance of buying with seller financing and great terms
LakeHouse.com – Many of these homes are second homes which the seller rarely visits. These sellers are very likely to sell with seller financing and great terms. Unlike the FSBO web sites, lake homes are often sold completely furnished.
GoSwap.org – This site is primarily a site for permanent swaps/trades but many of the sellers also offer seller financing. You can do a search for properties being offered with seller financing worldwide or for a specific area. There are currently 100+ homes being offered with seller financing at GoSwap.org – these are homes all over the world. You can contact the seller through the web site. Seller financing is a good way to pick up an ocean front home in Costa Rica, or a ranch in Montana, a house in Florida, or a villa in Italy. Think Bigger!
Craigslist.com Get your virtual assistant to contact every seller (by owner only) to ask if they would consider selling with seller financing. You’ll be surprised how many will say yes! Even if they won’t sell with seller financing, many of these sellers would consider leasing their property to you then you could sub-lease.
Buying with Seller Financing or Owner Financing is the quickest and easiest way to acquire real estate. If you buy directly from an owner occupant (not an investor) you will always get the best prices and terms.
You don’t need to wait until you have 10-20% down. You don’t need to wait until your credit is cleaned up so you can get bank financing. You can buy real estate with seller financing now.
Contact sellers who have properties listed on the sites above so you can buy a house with seller financing this month! But be warned… you will like it so much you will probably never go back to the old, slow way to buying houses.
I have bought hundreds of properties with seller financing and never used bank financing.
Sellers like selling with seller financing too! They can sell faster. Plus, it is a way to generate cash flow to supplement their income.
Best of Success… and Freedom,