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
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
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
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.
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Seller Financing Questions Answered! By April Crossley
