Rookie Reply: Tips on Owner Financing Then Refinancing Out | Rookie Podcast 56

This week’s question comes from Cory on the Real Estate Rookie Facebook Group. Cory is asking: Owner financing would buy me some time to get the property rented and cash flowing as well as build some equity before taking it to my bank for conventional financing. Any tips, suggestions, stories on doing this?
Many real estate professionals have an opinion on owner financing (also called seller financing). Some love it, some hate it, and some just haven’t had any experience with it. Ashley has had some great experience not only owner financing a package of properties for sale, but also being the owner who has financed her property when selling it.
Here are some of Ashley’s suggestions:
Show the seller that you’re financially stable with some key documents
Work with the seller to find terms, interest rates, and payment options that work for you both
Ask the seller what they need to make this deal work for them
Draw up a letter of intent and attach an amortization schedule
Get it structured and drawn up legally with your lawyer
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).

[@SterlingWhiteRealEstate]

09:21 "There's no right or wrong. Figure out what will work for you first and present it as easily as possible, as you can, to the seller."

[@pouchy400]

Hey Mr. White, What are good reasons or points that a seller would want to do seller financing?

[@cjcruz7965]

@@pouchy400 they may not want all the equity or capital gains up front. They also may like to be receiving money monthly without having tenants.

[@oakjim206]

@@pouchy400 you can sell home as-is, no broker fees, and seller can make decent money with monthly payments and interest rate.

[@sujoyganguly247]

@@oakjim206 I'd love to learn how - could you please explain? Thanks!

[@sicklecellwithdr.o]

Great answers! Thanks for sharing your story

[@brandotex]

Love this segment

[@sondract3237]

This video was super helpful. 👍

[@Ralikethegod]

I need more videos on financing for commercial properties like Apartment buildings

[@misunderstoodkj]

Love it!!!!!

[@thomasbrown8206]

Really helpful… thank u

[@fabiola925]

Logged on my phone to say I am enjoying these mini videos

[@kcurby]

Can someone finance you, and then sell the note to an investor or bank?

[@alfredoa2694]

Hey. When using seller financing do you purchase at a higher arv% than usual? For example I set my cash offers at 70% rule. Do you keep that rule with seller financing? Thank you

[@jordanmakesfinancevideos650]

nice video

[@stephaniechavez7455]

When refinancing out if the home has equity can you use that? Or does that go to the seller?

[@andr3wsvaz223]

A family members refinance there home and now are looking to sell it. Can a seller financing be applicable in this situation?

[@yoelfriedman4157]

Any way to do seller financing together with a inplace loan that the seller has?

[@lovelinksmusicbratta8610]

You fail to discuss recording the note etc, contract recording with attorney etc.

[@accrualworld318]

I am always confused on how one uses a refinance to pay off a hard money loan or in this case a seller financing. Does the bank actually give you a check in hand for $100,000 for you to pay off the seller financing?

[@tyvondavis]

I’m wanting to know the same thing.

[@sweettiersify]

The Hard Money lender is always on first position. The Bank will pay them first then Give you the rest.

[@InvestAndGrow2020]

Once you cash out on the refi everyone you owe will get paid first. You’ll be the last one to get paid if there’s any profit left on the deal.

[@LeonelVanegas_]

hey when using seller financing can you buy the house in an LLC if you plan to keep it as a rental ?

[@cjcruz7965]

Absolutely

[@LeonelVanegas_]

@@cjcruz7965 thank you !