thelemur

To create an owner financing deal does require a lot of marketing to motivated sellers. It's not an easy thing, but it's doable. You can create whatever you and the seller agree to. My down-payments have been either nothing, or $2k-$3k. Sometimes you can even do 0% interest financing. It's not as complicated as a business proposal, you simply make friends with the owner and talk in very basic terms "How much per month would you like to receive?" You don't want to talk "loan" "financing" and all those fancy terms, talk to them at a very basic level so they dont get overwhelmed with legal jargon.

A good starting point is joining your local REIA.

I manage everything myself, it's cheaper and not that time consuming. A management company would take 8% of my gross rents, probably have higher vacancy since they aren't quite as hands on, and their maintenance people would probably be more expensive than mine. 30 is a great time to start, get movin!!

clarkster009

Ok, I thought you meant an owner-buyer, similar to a venture capitalist to invest with you. So you are saying contact the seller. What is their advantage of the 0% interest financing? Just the fact that they found a buyer to offload the property?

Thank you I will look into attending some REIA meetings. According to my search, the Washington DC REIA was voted #1, so that's a good start Gotta get some cash flow going ASAP!

thelemur

Long story short, it doesn't matter what their advantage is. Stop thinking logically. Understand their needs to propose what solves their problems. If interest rate never comes up, then it never comes up. Often and owner will agree to a sales price at XXX monthly payment until paid, and that's it. Only talk interest rate if they do.

The key is identifying a pool of motivated sellers (not MLS listings) and marketing to them. Properties with code violations, landlords who have evicted tenants, out of state owners, pre-foreclosure, etc..

clarkster009

Hah I like this part ^

Thanks so much, that much information definitely helped. I will have to do some more researching now.

Scot

This sounds exactly like a Carlton Sheets DVD... LOL.... how much success have you had at getting owner financing? I cannot imagine anyone signing up for this. I could see an elderly person maybe doing an owner financing for part of it at 7% interest or higher, so there is some reward.... and only on part of the purchase price...

So i find someone who wants to sell badly and they agree to trust me..... most people need to get the equity out of the house (if there is any) or get the loan off their name so they can buy their next house....

I am not saying this is impossible but sure seems damn near impossible...

thelemur

It all works, if you work at it. Here's a couple I did recently:

down payment $3000
owner finance mortgage $400 (0% interest)
rented for $1100

down payment $2000
repairs 18000
owner finance mortgage 225 (3.5%)
rented for 1165

down payment $2000
owner finance mortgage $200 (3%)
rented for $650

down payment $2000
owner finance mortgage $200 (3%)
rented for $666