HOW TO STRUCTURE SELLER FINANCED DEALS JIM INGERSOLL
4.
Zero interest loans:
Banks and hard money lenders make a ton of money on interest, so when
negotiating direct with sellers; make them an offer at zero interest. Can you visualize how nice a 100%
amortizing loan can feel where every penny of every payment drops your balance? You can afford to
potentially pay over market price for a house that includes no interest on the seller financing. When
presenting the offer don’t ask specifically for zero interest, instead structure the offer as a number of
payments at a monthly price. For instance, if the house is $60,000 make an offer to pay $600 per month
for the next 100 months. In 100 months you own that house free and clear and life is good!
5.
Joint venture with the seller: What if you could offer the seller a piece of the future upside equity in the
house he is selling you? Not many regular buyers could ever offer future upside equity. This strategy can
be combined with the others and used when sellers resist other offers. Make it as a final offer before
walking away without the house. It works just like a joint venture with a private lender, but in this case
your private lender is also your seller.
There are a lot of creative ways to buy houses with seller financing. Understand that you have a solution to
your seller’s situation and the key is to find a solution that works for both of you. Consider presenting 3-4
offers to your seller and ask them which one works the best for them. That will start the discussion that can
lead to your buying houses with great terms. If you buy with great terms, without needing a bank mortgage
you will be on your way to building a great portfolio of income producing assets.
Jim Ingersoll
Jim Ingersoll is a real estate entrepreneur who teaches investors how to generate cash flow and build
wealth investing in real estate without banks.
Jim continues to buy, sell and manage his own
properties and is an active on the street investor.
Jim has numerous publications including his two published books “Investing Now,” “Cash Flow Now” and the soon to be
published “Private Lending Sec ɕ