How to find free-market deals?
Buying a house with financing from the seller. How to find such deals?
You can search for such properties in Craig List, press OWNER FINANCING
You will get many results.
But is this the best way to find deals with seller financing?
The problem with most of these deals is that they are not attractive to us buyers
Or that the property needs a general renovation (it does not pay to buy a cheap rantal property and make a full renovation) or that the property is in good condition but requires an excessive price above its market price.
so what are we doing ? Going to work in the method by which we control our transactions.
Ie we buyers need to determine the terms of the transaction rather than the seller.
For this purpose it is recommended to get to the sellers directly rather than via brokerage means that we need to deal OFF MARKET.
How can I find Off Market deals at no cost (except for your time ...)?
You can call rental ads.
One site I recommend is www.socialserve.com
What is special about this site is that many of the rental announcements are offered by the sellers themselves and not by brokers or management companies.
When you reach a property owner who wants to rent his property you start the conversation like this:
"I saw the rental ad you posted to your property ... Did you consider selling the property perhaps? "If his answer is yes or yes if ... we will ask him questions about the property (condition, size, bedrooms / bath, what should be repaired at home, when was replaced roof etc.).
Now ask him what minimum price he would accept for his property (if he does not know well).
He was also asked if he had a mortgage on the property. If his answer is negative then we have found good potential for selling property with owner financing. By the way, if his answer is that he has a mortgage, the deal might fit as a SUBJECT TO transaction and I have already talked about this in one of the previous posts (please read).
Now that it is clear that the owner is willing to sell and that he has no mortgage on the property our next question to him will be consider a sale with owner financing. If there is no sweeping disqualification on his part, we can move forward and tell him that we will return to him within 24 hours with a detailed proposal. His e-mail address must be taken from him.
Finally, we will prepare an organized and written proposal and after we prepare and send it to him, we will contact him again by telephone.
What we want to acquire with the purchase of property with owner financing:
1. Buy under market price (always ...) - maximum 90 percent of market price.
2. Make a small down payment as much as possible (aim for a zero down payment - ie 100 percentage of funding).
3. Deploy payments over as long as possible (30 year specified)
4. There is no early repayment penalty.
5. Positive monthly cash flow after all payments on the property (property taxes, insurance, management company, mortgage payments, maintenance).
Warning: Do not buy assets in war zones (WAR ZONE).
Good luck to everyone.
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