How to Seller Finance Your Deal and Repair Cost

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

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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

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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

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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