In this episode Tyler Sheff answers several questions from the CashFlowGuys.com Podcast audience.
We begin with seller financing where a listener asks “How can I convince the seller to accept owner financing”. Tyler explains several ways that owner financing aka Seller Financing or Purchase Money Mortgages can be explained to a seller to where it makes sense to them.
An old saying says “A man convinced against his will is of the same opinion still” This means that you cannot force your opinions and ideas on others, instead you have to explain it in a way that brings the other person to a point to where your idea becomes their idea. By taking the time to explain the features and benefits of your idea to them, they can begin to discover what is “in it for them”
There are numerous benefits to seller financing that homeowners need to be made aware of. This is one of the most used strategies that Tyler teaches his coaching students. When structured properly, it can create a true win / win relationship. Tyler goes on to provide some real world examples that can be used to assist you in obtaining terms on your next real estate purchase.
Tax advantages are a popular benefit of seller financing. By explaining the basics of these advantages, you may be able to pique the interest of the seller. Publication 537 if the IRS code discusses the tax advantages if installment sale agreements (seller financing). An investor should become very familiar with this publication and Section 121 of IRS code.
By learning to negotiate terms as a wholesaler or rehabber you will able to acquire and flip far more property. When you make the property you are offering “easier to buy” far more buyers are attracted. What happens when you open your property up to a larger audience? The price goes up…WAY UP.
Take the time to truly discover the needs of the seller. This one point is the most often overlooked thing that Realtors miss. Ask a listing agent “why are they selling”, most will not be able to tell you why the seller is really selling. If you listen to the answers to the questions you ask, often you will learn, how much money the seller really needs. Sometimes….they don’t really need money at all (yes that is true).
Do you feel that mastering the mindset for seller financing is important for you? Do you feel you could buy much more real estate if you had the training on how to master this mindset? To talk to Tyler about becoming a Cash Flow Guys Coaching Client, book some time on his schedule at CashFlowGuys.com/coach
To read discussions on our private Facebook group on this subject or watch Tyler’s videos on it go to CashFlowGuys.com/Group to join our free Facebook Group.