Multifamily Real Estate Investing – Seller Financing

Welcome Real Estate Investors!

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So far, we have covered financing your deal with traditional lenders: local, national and conduit. Now, we are going to talk about funding your deal which is raising an additional 20-30% for a down payment, closing costs, and capital expenditures needed to do the deal. Most lenders will require a down payment, and you have these other additional fees to worry about. So, how do you do that?

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Well…there are numerous ways. One way is raising the money from friends and family. Another way is raising money from accredited or non-accredited investors. An accredited investor is someone that makes $200k+ individually or $300k+ jointly or has $1 million net worth outside of their primary residence. If you want to do a lot of deals or big deals, this is the route you will have to take. This is the route I am taking, and I will likely post about my strategies and tips/tricks in the future. However, there is another option that might not be top of your radar that is easy money to get, and that is seller financing.

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Owners will frequently finance from 10% of the deal, all the way up to the entire deal. There are a variety of reasons why sellers might agree to this; suffice it to say that you’d be surprised at how easy this type of financing is to get.

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It is typical to get 10-20% seller financing. You do this by giving the seller a second mortgage on the property. Then you make your regular monthly payments on that note to the seller. Sometimes you can arrange for the note to have no interest payments, but just a lump sum due at the end. That one payment includes any calculated interest rate you agreed upon.

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The note may also…

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Read the full blog post here: https://connormccarl.com/seller-financing/

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