How to Seller Finance Your Deal and Repair Cost
Everybody on our channel you’ve been following us for a while if you’re new to the channel make sure you subscribe so we put out a ton of free valuable content for you and you know i’m huge on seller finance i love seller financing or what some people call owner financing it’s my favorite from you of ewers and i had a
Viewer that had a question about a 12 plex that he or she i’m not sure because i didn’t get a name with the email but they’re looking to buy on owner finance so i’m gonna go over that question today my name is igor crossley i’m a real estate investor in berks county pennsylvania i flip houses here i buy small
Multifamily properties and i do a little bit of private lending welcome to my youtube channel today we’re going to talk about a 12 plex that a real estate investor wants to buy on over to and he’s wondering how do you work that with the owner finance so based on the information he told me so i don’t have all the information
As i’m just working with would you give me to your okay i’m assuming the 12 plexes on the market because he said that the ambassador the person that’s selling the 12 plex has a real estate agent and he asked does a real estate agent hinder the owner financing offer like if he made an owner financing offer
And will the real estate agent automatically say no because its owner financing they shouldn’t they should present every offer to their client because that’s what they’re supposed to do as real estate agents but the real estate agent is gonna want to get paid especially if the 12 plex has been listed so someone has to
Pay that agent either it has to be you who’s looking to buy the property meaning you’re going to give the seller enough down money that they can pay their agent or the seller is going to pay their agent out of their pocket so it all kind of depends that the agent is probably going to want to know that they’re
Going to get paid if your owner financing it for a short period time like six months or a year you might be able to say to the agent hey i’ll draw up an agreement with you that at the end of this period of time i’ll do a cash out refinance with a bank and then i will pay you your commission okay and some agents are
Open to that as well so from what i know the person that sent me this email told me that they put in an offer for owner financing at 3% with no money down so i’m not sure the situation i know it’s in a c- market he said so if you guys know the whole abcd markets a is like with fancy markets that we love and
Everything’s so pretty and d markets are like that’s kind of a war zone and being really careful if you walk down the street where those properties are okay that’s kind of the range so this is like gonna see – market financing at 3% meaning he’s telling the seller i’ll pay you three percent interest on the loan amount
This is really low if you can get this totally good for you go for it all day long most of my seller financing deals are done somewhere between five and six percent but you have me thinking maybe i’m not shooting well enough so maybe i should go in a little bit lower but 3% is really low and no money down might
Be a sticking point again because of paying the real estate agent also this person is gonna hold a loan for you so they want to make sure that you have enough liquidity that if something goes wrong with the building you’re gonna be able to fix it or pay for it or have some kind of money to fall back on so no money down
Isn’t super appealing but again i don’t know the market i don’t who the seller and i don’t know the condition of the building so it it might be something that works for them so we’re already talking about paying the agent and money down and he said it needs $50,000 in repair so if the owner finances the
Loan amount for what they’re asking for the building where the heck does this money come from how do you get $50,000 to fix up the building so you can ask the owner if they would maybe finance an extra fifty thousand can you somehow get that money back at settlement or can you like basically pay fifty thousand more and
Finance it but get that money back at settlement or do come out of pocket with the fifty thousand so i can tell you we just bought an eighth unit on seller finance a couple of months ago and we came out of pocket with the money for repair and then what we do you hear about this all the time on my youtube channel we
Come out of the pocket with the money for repair and then we go to a bank once it’s all fixed up i’m earning a cash out refinance and pull out as much money as we can hopefully we’ll pull out enough to pull out all the money we put out in repair so you have a couple options there to pay for repairs whatever you do and
I feel like we’re meeting the diverse here because we talk about this all the time on our channel but you have to make sure that whatever little you take out whether it’s for the price of the building plus to repair or say to take out a home equity line of credit on your house or another property and help
Pay for the repair you have to make sure that with the payments you have to make on all the money you have out that the property still cash flows and covers itself okay you don’t want to get yourself in a jam where your property is not cash flowing on your right completely maxed out on everything okay so i hope that
Helps please email me again and let me know many may know about this twelve o’clock so i’m super curious if your owner is gonna go for your three percent with no money down i mean if the number option would maybe be to joint venture to but i don’t know how much i don’t know enough about the building like the rents
And what cash flows and how much fat is in there but you could team up with another investor and have them bring the 50k out of their pocket for some kind of piece of the deal so that’s always an option as well i hope that helps answer your question if you guys are looking to learn more you can follow us on instagram at
April crossley you can follow us on facebook at lazy girl real estate and you can check us out online at wwe um
Transcribed from video
How to Seller Finance Your Deal and Repair Cost By April Crossley