Your Financial Pharmacist YFP Real Estate Investing 34: Deep Dive: Seller Financing
Dec 4, 2021
34:23
Nate Hedrick and David Bright do a deep dive into seller financing and how it can be a win-win for both buyer and seller.
Key Points From This Episode
- Nate gets us up to speed on a rehab deal he's started work on.
- Introducing today's hot topic; seller financing!
- Touching on 'subject to' seller financing and why it's a little less prevalent at the moment.
- We first define seller finance and cover the basics of how it works.
- A reminder to send in your questions; we want to cover what matters to you!
- Unpacking a case study, we get into detail with structure and when it's the right fit.
- Transparency and putting money in straight away to get the equity up.
- Discussing the freedom to create a win-win situation for you and the seller.
- Recognizing the ways the seller will be acting like a bank.
- David shares some risk-mitigation nuggets for this kind of deal.
- We get specific with the numbers and see how David came out on top.
- How having a team ready to go made all the difference!
- Hear about the cons and risks; paying above market value, prepayment penalties, and more!
- What scenarios might make a seller interested in this, and aligning your incentives.
- David shares some parting advice on how both sides can protect themselves.
Links Mentioned in Today’s Episode