Today, we’re going to talk about how to be successful at seller-financed deals. First, one of the most important things is to pre-screen the seller. If you want to be successful at seller-financed deals, you have to discover right away if they are going to be willing to take your proposal. A few simple questions are all you need to know if the seller is motivated or not.
Here are some questions you should ask:
- Why would you want to sell a nice house like this?
- What are your plans?
- Where do you plan to go?
- Do you know about any repairs that need to be done and how much do you think they will cost?
- If you were going to buy this property and pay top dollar, what would you expect to be done before you buy it?
- Have you ever thought about renting the property? If so, what do you think it will rent for?
- How much are you asking for your property?
- What is the existing mortgage left on the property and what is the monthly payment, including taxes and insurance?
- Are the mortgage payments current?
- Is your mortgage adjustable rate or fixed rate?
- What’s most important to you?
- Is getting all cash at closing what you are after?
- Is your main goal to not make a monthly payment?
- Is your main goal to not have to maintain the property?
- Do you want to create a monthly income?
- Do you want an annual payment?
- Do you want the balance due after a certain amount of time?
- Do you want seasonal payments?
- Would you agree to an early payoff discount?
- Would you agree to a wrap-around note mortgage?
- Would you agree to an option to purchase?
- Would you agree to a lease option?
- Would you agree to long-term escrow?
- Who will pay the closing cost? Try to negotiate this.
- Will you agree to a “subject to” deal?
Asking the right questions will help you negotiate a deal. You can give their price if they agree to your seller-financing deal. Visit www.larryharbolt.com to sign up to receive more tips and updates that will help you become a successful investor.