Seller financing will never happen. - Posted by Joshua

Posted by BR on November 25, 2000 at 19:06:33:

I get mostly vacant lots at tax sales. The properties I referred to are not tax sale properties, thus the ‘nothing fancy’ comment. They are properties I have had for a long time. Long term old fashioned buy & hold. There is no magic of late, just more creative ways to acquire property by getting in light with huge discounts.

Seller financing will never happen. - Posted by Joshua

Posted by Joshua on November 16, 2000 at 04:39:38:

I find it extremely hard to believe that anyone would owner finance the sale of their property. I know I wouldn’t. If someone has their property for sale they need the cash to pay off their bank loan so they can buy another home. If by some miracle a person took your offer of seller financing who is going to pay the realtor fees? The only way I see anyone getting seller financing is buying a home that is free and clear. I challenge anyone to find rental property that is free and clear.

Re: Seller financing will never happen. - Posted by Laure

Posted by Laure on November 20, 2000 at 21:47:03:

I own numerous rental homes free and clear. I also sell them with owner financing ! HA !

Laure :slight_smile:

Free and clear 2 family fsbo, seller finacing… - Posted by Paul_MA

Posted by Paul_MA on November 18, 2000 at 04:07:10:

I’ve got one for sale right now Josh. Here is the web page address:

The photo will be in the ad soon.

One more from the trenches… - Posted by Carmen_FL

Posted by Carmen_FL on November 17, 2000 at 17:13:32:

Had a friend going into foreclosure, 4 months behind. Got her to let me help. Found a buyer within one week to put down enough $$ up front to bring the original mortgage current; pay the realtor a “walking fee” since she hadn’t done much; and make a small profit.

Right now this friend is holding a contract for deed - Yes, that’s called Owner Financing - and making $118/month profit. The guy pays like clockwork - he knows that if he loses this house, no one else will finance him.

Have another 2 on the hook now who are willing to just sign the deed over - OOPS! That’s NOT owner financing! That’s even BETTER!

So if you say it won’t work FOR YOU, I believe you. But don’t tell ME what will work for ME!

Re: Seller financing will never happen. - Posted by Bill Scott

Posted by Bill Scott on November 17, 2000 at 03:54:43:

Right now I have listed five duplexes, total value of about $300,000. If you can get a loan of $100,000 to pay off the mortgage balances, my seller will land contract the remaining $200,000 with a 30 year amortizations and a 5 or 10 year baloon. You have my e-mail, I’m in SW Ohio. Interested? BTW—I have investors/sellers who do this all the time!!

Re: Seller financing will never happen. - Posted by Farrah

Posted by Farrah on November 16, 2000 at 19:15:00:

They are out there you are just no loking hard enough, you’ll be suprised how many owners say they won’t seller finance but will lease option to you , you then sub lease it to a tenant. I am signing a contract on a seller financed home tommorrow, they are there you just need to call and qualify the sellers!

Re: Seller financing will never happen. - Posted by Peter

Posted by Peter on November 16, 2000 at 18:56:48:

I have several free and clear rental properties that I am going to sell by owner financing.

You have been helped-now say the magic words… - Posted by Ray

Posted by Ray on November 16, 2000 at 17:23:34:

Hey Jacka$$-

You started this and now you have responses. How about replying to them. That is a big problem with these boards-too many darn people like you asking questions BUT NOT SAYING THANK YOU!!!

Re: Seller financing will never happen. - Posted by Mark-Ga

Posted by Mark-Ga on November 16, 2000 at 16:00:37:

I just signed three seller financing deals this week, so it does happen.

The first is a well-off, long-time investor who is disabled and can’t handle the upkeep. They don’t need the cash, but need someone to take over the hassles.

The second is about to be foreclosed on. He doesn’t care if I take over the payments.

The third is a fellow investor with an extra property on his hands. He wants to defer some of his taxes into next year. He is wrapping the note for 6 months.

Granted, I need cash for each of these deals. However, they are all good enough that I can make a phone call and bring in many willing partners if I have to.

Now, I did a LOT of work finding these deals. But they were out there for anyone to find.

Keep at it…

Proof . . . - Posted by JoeKaiser

Posted by JoeKaiser on November 16, 2000 at 16:00:36:

Walk down to your recorder’s office and have someone punch up real estate contracts or private mortgages and deeds of trust. It won’t be a small amount transactions, by the way.


If you don’t believe theory, believe reality! - Posted by William Bronchick

Posted by William Bronchick on November 16, 2000 at 10:36:44:

People with no equity often have no choice but to sell with owner financing (letting someone take over their payments). People with free and clear homes have more choices and are not as motivated.

Re: Seller financing will never happen. - Posted by BR

Posted by BR on November 16, 2000 at 09:50:43:

Not everyone has their property mortgaged to the hilt.
In fact I have several properties free & clear to include SFR’s, multi-family & commercial properties. Some of which I use for a credit line just in case I find a cash deal that I can’t pass up.

BTW…If for some reason I decided to sell any of them, I sure as heck wouldn’t want cash.

Live & Learn!

Stick around - Posted by Bud Branstetter

Posted by Bud Branstetter on November 16, 2000 at 09:12:01:

Learn as you listen to discussions here. Please keep an open mind.

You make several assumptions. One is that they need cash to payoff their bank loan. As has been pointed out you do not have to pay off that loan. Done it numerous times myself, though not the thousands that Bill Gatten has facilitated.

You also assume that there are realtor fees to pay. Many situations where people try to sell before utilizing a realtor. Many situations that they sell after a listing has expired. There are also some situations that realtors take their commission as payments over time. Even some that the realtor gets their fee in cash and the seller finances. Just think of all sellers that took back a note for part of their equity. There are people referred to as note buyers that will pay cash for those notes. They will even buy them at closing so the seller gets cash.

You assume that rental properties all have a mortgage on them. At certain stages of investing people would prefer to have income at loan rates versus more cash in a savings account and their paltry return. I can’t think of a safer investment for the return than a single family home.

Your last assumption was that you wouldn’t. Here is where you need to keep an open mind. If you could find a buyer that would pay you your price, not violate a due on sale clause, pay a realtor his fee if needed then there would be no reason not to owner finance. Your circumstances right now are such that there is not motivation to sell. Many people move, get divorces, new jobs, get behind and can’t catch up. A miriad of circumstances to make them more motivated to sell with owner financing.

Re: Seller financing will never happen. - Posted by Gator

Posted by Gator on November 16, 2000 at 08:28:48:

Sorry to disappoint Joshua but I’ve done several times too. Last winter an older gentleman stopped me at church and asked me if he could come by and talk to me about a piece of property that afternoon. I usually don’t do business on Sunday but he was leaving for Florida for the winter on Tuesday. His deal to sell a trailer and cottage for $30k had fallen thru and he wanted to know if I was interested. Told him my plate was full, thanks anyway. He persisted and sold me the property for $0 down, about $185 per month, $20k total. It produces $425 month income. Sweet. By the way, about 75% of my properties have no mortgage against them, and for the right buyer, at the right price, I’ll owner finance any of them. Its no miracle, just years of success and building a reputation. Best of luck.


Re: Seller financing will never happen. - Posted by phil fernandez

Posted by phil fernandez on November 16, 2000 at 07:14:09:

You couldn’t be more wrong with your assessment that seller financing doesn’t happen.Case in point. I once bought a nice 8 unit apartment complex for $275,000. Seller held a $255,000 1st and a family member loaned me the remaining $20,000 and took a 2nd mortgage on the property.

Another quick example. Once bought a house with a $40,000 bank mortgage on it. Took the house subject to this mortgage and gave the seller as I recall $3,000 to walk. So the seller doesn’t neccesarily have to cashout his existing mortgage to buy another house. My seller in this example did indeed buy another house.

I could go on and on, but these are just two quick examples of seller financing. Realtor. What realtor. I don’t deal with them so there is no commission involved.

So if you think this seller financing won’t work your right, because you think it won’t work. Yet hundreds if not thousands of deals are closed each and everyday that involve owner financing. I know I’ve been doing this for 25 years.

Re: Seller financing will never happen. - Posted by WayneMD

Posted by WayneMD on November 16, 2000 at 06:40:43:

Sorry to disappoint you Joshua, but I happen to own three properties that are rentals, free and clear, for which I paid $560K. They’re worth more now, and yes, dumb as it sounds, I would consider owner financing. In fact, I did carry a first mortgage for nearly 20 years on a property I bought for $25K and sold for $140K. One of my better deals.

I agree, it appears unlikely in print that someone would do such a thing, but everyone’s situation is different. You’re right, however, to keep a realistic attitude. Too often dreams get a bit carried away with the approach of, “Oh I think I’ll just skip out today and flip a couple of properties for $20 or $30K profit.” Doesn’t happen that way. You have to work hard and know when an opportunity has presented itself. I have found in the past that, at times, I have literally been frightened away from a perfectly good deal becuase it seemed too good. My loss. I think they call that the school of “shouldadone”.

I have done quite a few very profitable deals over the years, but I still consider myself a newbie. That means never stop learning or reading. Try to watch out for the fakes (and there are plenty of them)and remember to work with compassion. You always will profit that way.


free and clear rentals - Posted by leslie

Posted by leslie on November 24, 2000 at 04:13:50:

How did free and clear come from, I assume, creative financing?

Thank you… leslie

your free and clear rentals…how? - Posted by leslie

Posted by leslie on November 23, 2000 at 13:27:17:

I’m quite suprised at the number of investors posting that they have free and clear properties.

I wonder if this is a planned happening, or came about as a side benefit of a trade or …?

Over a long career some loans would pay off as they amortize. I have the feeling, and I could be entirely wrong, that this is not what is happening in many cases. I suspect there is a method to this madness.

I guess we could sell a handful with some equity to pay off one, but those darn capital gains taxes…

I would love to hear about the advantages and methods for getting a few “free and clear.”


Re: If you don’t believe theory, believe reality! - Posted by David Alexander

Posted by David Alexander on November 16, 2000 at 17:36:07:

and hey even then I get alot of seller financing folks with free and clear properties, some money now some later, either because they dont need all the money now, it would create tax problems, etc.

David Alexander