Investing in real estate can be a lucrative endeavor, but it often comes with a lot of red tape and complications when trying to secure financing. Luckily, there's a solution: seller financing. In this blog post, we'll take a deep dive into seller financing and show you how to use it to purchase investment properties.
First, let's start with a brief overview of what seller financing is. Essentially, seller financing is when the seller of a property acts as the bank and provides financing for the buyer. This means that the buyer doesn't have to go through the traditional process of securing a loan from a bank or other financial institution.
Now, let's talk about how to use seller financing to purchase investment properties. In the video, Matty A walks us through the step-by-step process he used to purchase a property using seller financing. Here are the key takeaways:
Find motivated sellers: Matty A uses Lead Sherpa to find high equity absentee owners who are looking to sell. These types of sellers are often more motivated and willing to work with buyers on seller financing deals.
Analyze the deal: Once you've found a potential property, it's important to analyze the deal to determine if it's a good investment. Matty A uses a deal calculator to help him analyze the numbers and determine if the deal is worth pursuing.
Structure the offer: If the deal looks promising, it's time to structure the offer. Matty A recommends making multiple offers to the seller, including a seller financing option.
Negotiate with the seller: Once you've made your offer, it's time to negotiate with the seller. Matty A recommends getting on a call with the seller to understand their motivation and goals for selling the property.
Complete due diligence: If the seller accepts your offer, it's important to complete due diligence on the property to ensure there are no major issues that could impact the investment.
Secure financing: With seller financing, you don't have to go through a bank to secure financing. Instead, the seller provides financing for the buyer.
Close the deal: Once you've completed all of the necessary steps, it's time to close the deal and take ownership of the property.
By following these steps, you can use seller financing to purchase investment properties without having to jump through all of the hoops required by traditional lenders. Of course, there are risks involved with any investment, but with the right due diligence and analysis, you can mitigate those risks and reap the rewards of a successful real estate investment.
In conclusion, seller financing is a powerful tool for real estate investors looking to purchase properties without having to rely on traditional financing methods. By following the steps outlined in this blog post and in Matty A's video, you can start using seller financing to build your own real estate empire.
Click HERE to watch the full video
