Buying High With Seller Financing

This specialist in buying high, targets sellers who are
reaching the end of their listing period with their Realtor and are clearly
unwilling to accept the reality they are over priced.  Typically
they have turned down offers and can’t seem to recognize their place
is not priced competitively.  The Realtor is motivated because he
knows he will soon loose the listing.

The offer has to allow the buyer to profit from fix up
and resale on a contract to a new buyer.  We are talking about the
typical 3 bedroom, two bath “bread and butter” house.  The
monthly payment for the new buyer must be affordable or the home won’t
sell.

So, what are the choices when the sellers price is above
market.  My friend handles this by offering terms.  He will
meet the price requirement but ONLY if the sellers will
carry back owner financing at a rate that lets him keep the overall monthly
payment affordable.

He will not put enough cash down to lower the payment that
way.

It doesn’t always work, but he is able to buy six-eight
homes a year doing this.  Since the payments are always affordable
he has few problems with default.

In addition, since he is creating a contract on which he
pays and also creates a contract which pays him there are always future
opportunities to pay off his debt for a discount and/or to get paid early
on what is owed to him.

It sounds easier than it is, and requires good negotiating
skills.