Learn How To Buy Real Estate With “Seller Financing”, “Subject To”, “owner financing”, and “take over house payments” in this real estate educational video.
1. BEFORE WE CAN TALK ABOUT SELLER FINANCING WE NEED TO UNDERSTAND A NORMAL REAL ESTAE TRANSITION (aka traditional)
The way normally buyers buy real estate properties after finding one day love from a seller is to go to a bank and back for a mortgage then the bank will transfer the money into the sellers account and the seller will convey the deed to the buyer therefore the buyer and the sellers have formed a triangle and the bank is at the very top. Both buyers and sellers are begging the bank for the loan or the sale will not go through.
2. LET LEARN ABOUT SELLER FINANCING/SUBJECT TO / OWNER FINANCING (aka Taking Over House Payments).
In a real estate transaction with seller financing there is no triangle because we delete the mortgage company. Why because real estate properties with seller financing the transaction is a linear one, which is more efficient, faster and more flexible versus the triangle transaction (bank) which we have a overseer the person at the top of the triangle, the bank, in a traditional financing.
HOW IS YOUR TARGET AUDIENCE WHEN BUYING REAL ESTATE WITH SELLER FINANCING / SUBJECT TO REAL ESTATE INVESTING?
Not every seller is willing to do seller financing and that is some thing that confuses a lot of real estate investors and traditional homebuyers. There are two types of real estate home sellers are willing to sell their house was seller financing.
1) The first type of real estate property sellers are willing to sell their home with Seller- financing or subject to real estate investing is called financially motivated sellers. A financially motivated seller is a property owner they cannot make their house payments because of many reasons for example they lost her job or order paycheck has shrunk because of the decrease in pay. Either way financially motivated real estate property Seller - or one of the types of homeowners that my seller home or the bank is going to foreclose on them.
2)The second type of real estate property sellers are willing to sell their home with Seller financing or subject to investing or emotionally motivated sellers. A emotionally motivated seller can be someone that has a death in the family or someone that's going into a divorce or someone that has in her house. I personally like emotionally motivated sellers because they're not financially in a hardship and many times they have a lot of equity.
For the most important thing to realize is that not every real estate home seller is a motivated seller, therefore the buyer must have a series of questions to filter out the real estate sellers that are motivated sellers from the non-motivated sellers, and the best way to do this is by downloading my seller financing script called “Ninja phone script” and you can download it here. https://www.myrealestatedojo.com/products/best-seller-financing-script-for-real-estate-subject-to-investing
4.).LET LEARN ABOUT THE PROS AND CONS FOR SELLER FINANCING FOR THE BUYER / REAL ESTATE INVESTOR
One of the pros for buying houses with seller financing for the buyer or real estate investor is that they don't have to have all the cash to buy the property as the seller will become the buyers private bank.
Another pro for buying real estate with seller financing for the buyer is that they don't have to deal with banks, there for the transaction will be smoother and way more flexible vs getting Mortgage from the bank.
Another benefit and pro of buying real estate with Subject To Real Estate Investing is that the buyer can negotiate at non-recourse loan. Watch the video for the explanation. Another benefit for buying houses with seller financing for the buyer is that debt is not attached to the new buyer. Since the new buyer is just “taking over house payments” and sellers loan is not paid off. Watch the full video to learn all the benefits of buying real estate with seller financing, subject to, owner financing, and owner carry financing.
Now let's talk about some of the CONS of buying real estate with seller financing and subject to real estate investing for buyer. One of the first cons for the buyer is the DOS which stands for due on sale clause, which is in the deed of trust. Simply put DOS (sale clause) allows the mortgage company to foreclose on the real estate property if the borrower/now seller conveys the deed of the property to someone else which in this case will be the new buyer. Watch the video for the for details . Another risk and cons for seller financing for the buyer when buying house is that the seller can come back and want the house back maybe few years down the line because they can look into their online banking and see how much equity has been built. Watch the video for full details.
LET LEARN ABOUT PROS AND CONS FOR SELELR FINANCING FOR THE SELLER
One of the pros for sellers financing for the seller is to sell the house for a lot higher price because seller financing demands a premium.
Another pro for seller financing when buying real estate property for the seller is they don't have to pay real state commission and all that junk fees that are associated with the closing cost in a real estate transaction. Watch my full video on the pros and the cons of seller financing for the seller of the property in this video.
Please Watch the video for a lot of important information I left out when typing as i did not want to type it all out. LOL :)
RESOURCES FOR GET THE DEAL WITH SELLER FINANCING:
SELLER FINANCING TRAINING (LISTEN LIVE CALLS WITH SELLERS NEGATION SELLER FINANCING PROPERTIES)
SELLER FINANCING MARKETING