As most of you know, I like to be creative with seller financing deals. So I’m going to share some insight on what I look for when trying to find ways to be creative. For the deal to be successful, it has to have certain criteria. Not every house on the market will work. But there are some sellers who will be able to take payments from you.
Houses That Need a Lot of Work
If you find a home that needs a lot of work, you might be able to get the seller to agree to six months without payments while you’re fixing it up. But you have to be willing to ask and convince them that if they give you those six months, you’ll be able to get a renter in their faster and they will be sure to get their money. It’s best if the property isn’t currently occupied by the seller. This gives you the best opportunity to fix it up, which benefits the seller later on.
High-Equity or Free and Clear Properties
These type of properties allow you to make a deal with a promissory note. The possibilities are numerous with this type of situation. You might be able to negotiate to not have to make payments for five or 10 years if they have a high enough equity in the property.
Expired MLS Properties
Properties that haven’t sold and are now unlisted are good possibilities to get at 20% below market value. Dealing directly with the seller can offer better deals than working with a bank or an institution. If you know how to work directly with the seller, you will have much better luck than trying to get a loan from a bank or mortgage broker.
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