In this conversational walkthrough, Jose presents a recent seller lead: a $300,000 townhouse with a $250,000 mortgage, roughly $50,000 in equity, and an immediate need for $20,000 cash. Chris Prefontaine guides Jose through a systematic analysis of the seller’s situation, emphasizing the importance of asking why the cash is needed and what the seller intends to do with the property (sell, rent, or exit quickly). They explore creative financing tools—lease‑purchase, subject‑to (sub‑2), and assumable/owner‑financing (AO)—weighing each against the seller’s timeline (wants to close within a month) and cash‑flow goals. Chris advises that if the seller truly needs cash, an AO may be the only viable route, but cautions against over‑leveraging a $20k loan on the house. He also suggests listing the property to gauge market value, using a quick‑cash buyer offer (e.g., $14,500) as a short‑term band‑aid, or structuring a rent‑to‑own scenario that provides both cash now and future cash flow. Throughout, the dialogue highlights practical questioning techniques, script‑based negotiation, and the trade‑offs between immediate cash, long‑term rental income, and market sale, giving Jose a clear framework to continue the conversation with the seller.
Chapters
I got a deal yesterday, a lady that I was just doing follow-up on. MJ talked to her back in March timeframe.
Got it.
She wasn't ready to sell at that time, and so she was trying to sell it on the market. She's had bad experiences with the realtor, and so I was doing a follow-up call yesterday with her, and she's ready to do something. And so she's got a $300,000 townhouse, nice unit, a 3/2 with about 1,850 square feet. And right now she owes about $250,000 on it. Okay, she— I started with an LP, a lease purchase on it, and so forth. And once she gave me the information, I realized that there's possibility of doing a sub-2 on it. The reason I say that is that she basically identified that she's got about $50,000 in equity, roughly. And so I asked her how much money she needed, and she said, because she really absolutely needs money, and she said about $20,000.
For what?
I didn't ask her that.
Okay, so that's number one you gotta ask.
Yeah, I, I do need to ask her that. But the bottom line is that she needs about $20,000 and she's ready to go. That— or the place is vacant, she's going to rent it out if she, if she doesn't sell it. She's thinking of renting. And so, uh, but she needs about $20,000. And, uh, I said, well, let me think about it. I've got to talk to my, my manager about it.
So is your question what style, what technique to use? Because I'm hearing AO if she absolutely needs it, but you don't know if she absolutely needs it. So you ask her what she needs it for.
Yeah, yeah. Okay. Uh, I didn't, I didn't think about AO on something like this because she, she's wanting to get out by the end of the month. She wants to do something by the end of the month.
Well, that's okay. But okay, so a few things that I would suggest you ask. What is it that you need the $20,000 for? Because I might have other ideas. That's how you say it.
Right.
Okay. Okay. When you're clearing that, if by chance she absolutely does and you go, oh, wow, okay, you need that $20,000, like whatever it is, then the only way you're going to do it is AO, unless you want to put $20,000 on a house. I wouldn't suggest it. It's almost 10%.
Yeah. Yeah.
So it's an AO. You take it to the market. And as far as the month, nobody is closing that thing in a month conventionally. So unless she wants to become a landlord, it's only going to be a short-term band-aid, as you've heard Nick tell horror stories. Then you're the best option right now. You can get done quick. You're offering terms. You're getting buried on your other house. You're already feeling that because you're offering terms.
Right. And but on the $20,000, I said, if we can get you the $20,000 upfront, would you be interested in doing something on payments as far as for the $30,000? And I didn't mention as far as the length.
No, that's all good, Jose. I like it. But I'm saying, do you— would this be something you'd want to take $20 grand or get a loan and put on that house?
You, right?
And if it's not, then go the script route that I'm saying. Because when I first started, there was no discussion ever about cash. They said they wanted cash and they'd say, oh, I ain't got it. It was that simple. So you guys, you guys, you're all like, if you're under 5 deals, right, in the community, and they say cash, hey, oh, hey, oh, yes. And he's going, they're quick.
Mm-hmm.
They're quick for them. You solve their issue, but they're also quick for you.
Right. Okay. In other words, get it listed, get— let's see what the market tells you on it right away. See what the market tells you on it. And if that could be the only way of doing it and making some quick cash without You having to fork out any money.
Yep. Good news and bad news, Mr. Seller. I got, I got a buyer, but I, I can only get you $14,500. She'll do it. Just, but find out the reason for us. So you and I are clear and try to record that.
Yeah.
And Jose, you know, if she rents it, she's not getting $20,000. No, that's the point. Yeah. Good point. Best of both worlds. You're going to get, you're going to get your money and you're going to get cash flow as a Potential. She can't take the security if she rents it legally. She can take the first month and pay a mortgage and make a few hundred bucks. So that's a very good point that I didn't highlight that Rusty did. Right. Therein lies the— you, you almost don't have to ask. Well, ask her what she's going to do with it, but then say, well, what if you rent it? You're not going to get that. And then let her talk.
Right. Okay.
I love it. Good point, Rusty.
All right. Well, you gave me a whole different perspective on how to look at it and how to approach it so that I can have a— continue the conversation and see if she wants to go there. And, uh, and we'll go— I'll go from that. I'll keep you posted on it.
