Seller Financing Questions Answered!

Seller Financing Questions Answered!

Hey youtube y’all know i am super passionate  about seller financing i talk about it a lot   videos. and if you have additional seller  because today i’m going to answer some  seller financing questions someone sent to me   april@lazygirlrei.com that’s my email address you  can send questions to and i will create a youtube  

Today’s questions revolve around seller finance.   april crossley i’m real estate investor   based out of berks county, pennsylvania had to  think about that. i had a home there up until   an rv. i’ve been traveling the united states   full time for the past 10 months. so what you see  behind me is obviously not a professional

Studio,   but i’m sitting in like the dining room kitchen  area who knows it’s all combined together in an rv   currently in montana boondocking in the middle  of nowhere running a generator so i can record   this video for you guys. but in berks county,  i own a flipping company some small multifamily   of private

Lending i passive invest into   large apartments that building syndications, i’m  buying bigger, bigger, bigger, so we’re always   looking for larger multifamily buildings that we  partner on because there are a lot to take down.   also looking for mobile home parks and little   motels and rv parks and campgrounds in

Certain  markets. so if you have anything you know, have,   let me know, i’d love to talk about partnering.  i’m actually working on rv park now with people   who found me via a book i wrote, and then youtube  and then i met them on my travels. so it’s pretty   cool. you just never know how you’re going to meet  people. today

I’m going to answer some questions   me. so the first question is, how do you find?   excuse me? how do you find a seller financing  deal in this crazy, crazy market. so i find all my   deals off market. so we do direct mail to sellers.  and the best way to find seller financing deal   long time that it’s paid off and

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Free and clear.   and target sellers that have a ton of equity or   sellers that own free and clear or sellers that  are 55 years old and up. because those are the   sellers that are probably sick of being landlords,  especially now, with the moratoriums in place.   own rental property and don’t want to do  

It anymore. but they like the cash flow from the  rental property and they don’t want to give up   that cash flow. so seller financing is perfect  for them. because they can become the bank and   still get cash flow but not have to deal with the  tenants not have to be responsible for the taxes,   any of that stuff. so direct

Mail to older sellers  or sellers that own properties free and clear in   your market. this person also asked me how do you  verify the expenses like when a seller is giving   you their expenses? like they pay the electric,  here’s what it is, i pay the water sewer,   here’s what it is. i call the utility companies  now

They won’t give me the exact monthly bill,   just say i’m looking at buying this property.   average water bill was on this property? and   99% of the time they’ll tell me every once in a  while you run across utility companies that won’t.   so you can always ask the seller for copies of  past utility bills or you can take

A look at their   tax returns you can get like the last three years  tax returns because it will usually state that on   the tax returns like what the different expenses  are. so you can use those to verify expenses but   i found calling utility companies or just asking  the seller for proof of utility bills has been  

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The easiest my highly recommend that because in my  area sellers especially landlord sellers meaning   non owner occupied, they will lie lie lie to sell  that building to you. they lie about utilities   allows, they lie. so you really need to do your   due diligence. the other question this person  has is what if the seller wants

To back out   in the middle of your seller financing deal. so  you drop a note mortgage just like you would with   a bank. and then the seller is like, listen, i  need 100 grand, i’m having a family emergency, i   need to back out of this seller finance deal. so i  need you to do a cash out refinance and get out of  

It. i know we’re only in your one. and i promised  to finance for five years, but i need out.   you can go to the bank and see if you can get  a cash out refinance. but i would renegotiate   with the seller, like, okay, we signed this note  mortgage, and you stated we were going to do it   for five years, and we haven’t even done

It a year  yet. and i understand that you need the money.   and i’m going to trying and get as much as i can.  but i’ll go to the bank and see what they’ll give   and how the property is currently performing.   but we might need to renegotiate, i would just  let them know that you can renegotiate what your   because

Your balloon payments based on that   five year amortization and you making payments to  them, or three years or whatever the timeframe is.   so their balloon payment is going to shift with  that. and if you guys don’t know what i mean,   i have seller financing videos where i go over  the whistle amortization schedule, it’s

The one   i use. i love it. it’s awesome. it lays out the  whole amortization schedule for you so you can   see what you would owe at the end of year 12345.  so that you’re able to better negotiate with a   seller. so make sure you go and check out those  videos. i don’t know, just like banks, a lot of   banks aren’t

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In the business of owning  houses and real estate. and sellers that   sell or finance don’t really want to own the real  estate either. so as much as you hear about people   or banks calling the note do as long as you’re  making payments, and they’re making cash flow,   to say it’s impossible and it won’t happen.  

You from doing the deal. you have to do a   lot of education with the seller up front to let  them know and make sure that they’re okay with   seller financing for that amount of time. like i  would never go to someone that’s 85 years old and   ask them to sell or finance for five years. no  offense to those of you that are 85

Years old,   but you might not live another five years. depends  on how healthy you are. it’s just reality. okay,   so you have to think about those things the age of  the seller and everything when you’re making the   seller finance offer. those are all the questions  this person had. but if you have more questions,  

Us out on instagram at april crossley you can   follow us on facebook at lazy girl real estate  investing. check out our website coming out with   some pretty cool gear. and we’re working on some  new course content. so i’m excited for you guys.   if you want to learn more about traveling   our group on facebook. it’s called rv rei.  

Transcribed from video
Seller Financing Questions Answered! By April Crossley