Creative Real Estate Investing Seller Financing Avoid Balloon Payments Negotiation
www.localmentor.com Local Mentor Michael Jake. here’s a deal I’m working right now. I made the seller 4 offers, 3 of which were seller financed and 1 all cash offer. He chose the 0 down, 900 per month offer till paid (from an email letter of intent) and then when I wrote up an official offer, he stated he wanted a 5 year balloon, or he wanted the remaining 000 balance due in full if I hadn’t resold it by then. I don’t like balloon’s and I didn’t want to back myself into a wall, so here’s how I avoided having a balloon payment. Enjoy the video, Post Comments or Questions below and for more, check out http
Great ideas but they usually don’t work in expensive markets like Southern/Northern California.
@mail22 question to you…Have you tried? I used to listen to Jack Miller talking about making offers with zero interest among other bizarre things I thought …why waste a lead where I might be able to actually do a deal if willing to pay interest…when I finally got it thru my thick skull, I find i actually have gotten MORE deals done with Zero Interest than with. Just saying. At least try, don’t throw in the towel before you step in the ring.
@localmentor only other thing I’ll add is if you show a seller where they are now vs. where they can be (as a result of your offer) and you can show a better position for them then you can make a deal.
Hi, Did you a land contract or subject to.? Thanks
And can you do a land contract if there is an exiting mortgage?
@Purpleregins4ever – this house is free and clear, so I’m buying it with seller financing. The seller will take back a note and deed of trust (mortgage) in first position.
I like the what if method of negotiation. Balloon notes can be killer, especially with unpredictable markets. Thanks for sharing.
Offering stepped payments is great, but be sure to ask for principal steps rather than interest steps, just like MJ explains in this video.