We know that sellers are our best source of funding when it comes to buying homes. Now the question becomes, “How do I turn my seller into my source of funding?”
One Street Smart way is to find sellers with existing financing or free-and-clear properties. That pretty much covers everyone, right? What’s unique is how we buy.
Don’t forget: “The Seller IS the Bank!”
Remember the story of how I bought my first house when I was just 19 years old? I offered the sellers to buy their house “subject-to” their loan. In other words, I agreed to take over their existing financing rather than going to the bank and qualifying for a new loan. Big deal? You bet! Saves you time, financing costs, use of your credit… essentially all the things that stop you in this business, this technique overcomes.
This type of seller financing is a win-win for everyone. The seller gets rid of a house and you get a nice profit. Once you start looking for these types of situations, you can easily find them again, again, and again.
Invaluable- every real estate investor should own Lou’s courses.
How do you get the most out of seller financing? Like any deal, it is the art of negotiation. You don’t have to be scared of that word. With the Street Smart System, I have a full script of how and what to say when presenting it to the seller. By using the right paperwork you can negotiate the fine points of the deal without you having to open your mouth. My paperwork takes out all the discomfort out of some sticky situations.
The best sellers to deal with are:
Many of my students are scared the first time they go out to negotiate a deal. It’s only natural but they know they can do it because they’ve been following the Street Smart System. Oftentimes, the students report back that they really didn’t have to say anything, they just followed what the paperwork told them to do and the sellers often times paid MORE than what was expected.
Is that a good thing? You bet it is. You can have the same experience if you learn and follow the Street Smart System.
Just because a deal looks good on paper, doesn’t mean it looks good in reality. Check out the next article that will help you evaluate properties to make sure it is the best deal for you.
To your success,
The Street Smart Investor