The REtipster Podcast | Real Estate Investing
Discover how to make great money investing in real estate in a way that helps people, doesn't require a lot of risks, and leaves plenty of room for you to live your life. The REtipster Podcast is the best source of insight and inspiration for new and experienced real estate investors! Seth Williams pulls back the curtain to reveal the inner workings of how he runs his land investing business and rental property portfolio. In each episode, Seth explains the most essential real estate investing strategies and business essentials you can use to stay ahead of the curve in your real estate profession. Discover how to skyrocket your income, replace your day job and earn your financial freedom WITHOUT risking your life savings. Seth dishes out real-world guidance about what works and what doesn’t in today’s business environment. Seth Williams is a land investor, rental property owner, online educator, and skilled communicator who has been a student of the real estate investing game for over a decade. Join him in the next episode and learn how to crush it in your real estate business!
The REtipster Podcast | Real Estate Investing
Buyer's Advantage: Owner Financing Terms That Put the Buyer In Control
When you buy real estate with seller financing, you can structure the terms of the deal so that YOU, as the buyer/borrower, have a deal that is highly advantageous for you, with as many options as possible.
Granted, you'll be somewhat limited by the seller and the options they're willing to give you. However, when you get a loan from a bank or credit union, you will not have this flexibility. There's not even a point in trying to negotiate the terms of your loan with them because that's just not how they work.
When you borrow money from a bank or credit union, they will always use their boilerplate templates, which are written to give them the maximum amount of control and options.
With seller financing, there is much more opportunity to write the loan documents in a way that is fair to the seller but also works to your advantage by giving you plenty of upsides and advantages.
Of course, your ability to negotiate terms will depend on the seller's flexibility, what they need, how sophisticated they are, and how much they're willing to entertain what you want. But in many cases, if you're the one proposing seller financing in the first place, and if you already have your own documents and deal structure well-planned and ready to go, many sellers won't put up obstacles in the same ways a bank will.
Understanding Your Options
I want to share several different terms you can infuse into your loan documents, to give yourself the kinds of options and control you will never have with a bank loan.
I don't mean to imply that you should always push for all of these things. In fact, it would be highly unlikely that you could get a seller to agree to all of these conditions.
My point sis NOT that you should pursue all these things. My goal is to help you see the different cards you can play so you can get creative and pull the right ones out of your back pocket when needed.
This way, you can choose the most appropriate one(s), depending on the seller's willingness to accept. When you understand the seller's wants and needs, you can fine-tune the terms to craft a deal that will work well for you.
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