What is Seller Financing and How Does it Work? [#AskBP 074]

Investing in real estate from a distance can be a great option for investors… IF the property manager is a rockstar. But how do you find a great manager when you can’t simply walk into their office? That’s the topic Brandon discusses today on the #AskBP Podcast. If you ever plan to use a Property Manager, this is one show you don’t want to miss!

[rjonesyow]

owner financing is common in places where it takes longer to sell property, like rural farm land in upstate new york. some property sits on market for years . so more and more sellers are trying owner financing. i made a deal and got 90 acres for 125k put 40 down and financed 80k for 7yr mortgage. i got five years left to pay and i own it . it is like car payment. done paying in a few years . do it while your still young

[dominicyork]

Wonderful explanation, 5 years later. Simple and To the point. thanks.

[tigeroll]

Thanks for giving a perspective from BOTH the seller and the buyer! No one else does that.

[kashfortheking]

On the due on sale clause, couldn’t a buyer talk to the bank and get an addendum to the clause so they don’t call the loan? I’m new to this but just wondering.

[bassiboylife]

Great video, thank you very much for this information Brandon. I'm currently reading your book 'The book on rental property investing' and I have to say as a beginner, this is absolutely amazing. With each page I turn my knowledge keeps on increasing. I originally knew nothing about real estate and this book has changed that hugely. Thank you for being straight up and honest and dedicating your time to writing a book because it has so much value and knowledge in it. I will be starting to analysing properties as soon as I've finished the book and read another Biggerpockets book I believe which is to do with estimating costs of repairs on a property. Thank you for your help

[lostintime]

Is there any way to find if a property that is owned free and clear? Is it public information? Can I call the city/town? Website?

[brothernet]

very
good
talk.
thank you.
I may put your teaching into practice as I own some in the DC area

[don-bo]

I feel like this could’ve had a much better explanation, especially for being 7 minutes long. For example it could have included how brokers would be paid in this arrangement and what the process is for having the title transferred and how to protect yourself in the buy sell agreement.

[felipebarrios]

Great video. Thank you. Love the quote and inspo at the end.

[brendaneaves]

You rock sir.


Thank you for being here on Earth.

[louiseduran]

Hi, this is by far the best explanation for a non native speaker. Please keep it slow or put subtitle next time. Thank you. Appreciate the video

[hchyan]

so what happen if the buyer stop paying the monthly payments can i foreclose as well - is it complicated ? due to the reason they are now the title holders ?

[adventureswithnikolev.]

Thank you for making this easy to understand.

[ladyboss]

Question: If a broker or mortgage company (if I am saying that correctly) cannot sell a home higher that what it is appraised or the appraisal value, then if a buyer (who becomes a seller) sells the house later on a seller finance option to another buyer, sells the house for a higher amount, due to the agreement being on terms, how could the seller be "cashed out" when the buyer (after the term year or balloon period) can only pay it off using a mortgage loan? Would a mortgage company or bank not lend the money to the buyer due to the selling amount being higher than what the house is actually appraised??

[overandthriving-xl]

With Seller Financing, what prevents the seller from taking a loan on the property while he's collecting from you? Does this go through an Escrow Company??? I am in California

[edisonjasonbarrios]

Great. But like me I am just an assistant to an investor and most of the call I made they keep on asking about terms because we are asking them if they would agree or open under a creative terms. What is the best way to explain regarding terms?

[Zerokool]

If you use seller financing can you still get first time home buyer loans for the second property? Or is it better to do the first one as an LLC and save the first time homebuyer ?

[mia]

Is there a standard interest rate for seller financing?

[edmandell]

If you continue to make the payments to the bank and you place the property in a land trust doesn't that remove the due on sale clause as an issue?

[joeraver]

Great info, thanks for explaining it thoroughly and to the point