Crazy to think it’s 2025 already! I’m sure you’re thinking ahead, like I am.
As always I have one big hope for you: that you are able to grow your portfolio in 2025 and beyond using the power of Seller Financing.
Here are four simple tips to help you be as successful as possible in your pursuit of Seller-Financed acquisitions:
1) Get Face-to-Face
The best Seller Financing is crafted through conversation directly with the Seller. The rapport matters greatly, and so does your ability to hear directly from the Seller so that you understand their situation as well as possible. With relationship and understanding, you can craft the best possible terms that give everyone the best possible win.
To get face-to-face, you might consider doing your own off-market marketing to Sellers. With more MLS properties showing Seller Financing as an option, it may be tempting to just look at the listed ones. I strongly encourage you not to do this! Those are RARELY, if ever, the best Seller Financing opportunities.
2) Don’t Make Limiting Assumptions
Many Buyers accidentally sabotage their own efforts in buying Seller Financing properties by making limiting assumptions. Here are a few examples:
—Seller Financing is only something Sellers do as a last resort, and they do so reluctantly.
—Sellers always want to get their money back as fast as possible, so they always prefer a shorter term
—Sellers will insist on high interest rates to make Seller Financing worth their while
Many times, these assumptions are simply not true. The remedy? Just talk to the Seller, ask good questions and listen for their answers…don’t assume you know what they will say, or that they will do what you would do in their situation. Learn to listen for the key Seller Financing clues that MANY Sellers say.
3) Don’t Settle for ‘Good Enough’ Terms
With seemingly more supply of Seller Financing deals available to buy, it’s very tempting to settle for terms that are less than stellar. People think “I’m getting Seller Financing, that’s awesome already!” and then don’t negotiate for better terms.
Better terms include [obviously] lower interest rates or lower down payments, but also longer term lengths (this is a BIG one), and most importantly of all: what I call the Supercharged Seller Financing terms that provide MASSIVE flexibility and can double the value of a deal.
4) Propose, Don’t Offer
The best Seller Financing deals are not made through “offers,” but rather “proposals.” What’s the difference? Offers are all about us as Buyers. It’s what WE are wiling to do; what works for US. The Seller is left to accept, reject or counter. Proposals, on the other hand, are about THEM. They are presented in light of what we’ve learned the Seller wants and needs to accomplish.
I believe 2025 can be a massive year for your journey as a real estate investor. Let’s go do some Seller Financing deals!