Flipping A House Using Seller Finance

Today I want to share with you a powerful strategy for flipping houses. One that can help you secure a deal even though you don't have all the cash up front. I'm talking about seller financing. When it comes to flipping houses and using seller financing, there are a few things that you need to remember. Timing is everything when it comes to flipping houses. So the minute that you close, you should have your contractor there the next day. So Make sure that everything, all your ducks in a row. You want to go in and out of this property as quick as possible. Hi, I'm Joe Homs, and I have over 40 years of experience as a broker, mentor, and investor. And I want you to subscribe so that you never miss a video. Seller financing allows you to negotiate with the seller and pay them over time. So seller financing is literally the seller of the property Taking back a note on the property so that you don't have to come up with a mortgage or a loan on the property. So for example, the property is worth $500,000. Let's say the seller is willing to take no money down. They're willing to take back a loan on this property for you, seller financing. So literally you go into escrow at the end of the day, you've negotiated Term. So how many years are you going to pay for it? You've negotiated interest and you've negotiated payment. Whether it's full principal and interest payment or just interest only, that's all negotiable. And so let's say I'm going to do a flip and I know I can be in this property maybe 6 months or so because it is really, really bad shape. So I asked the seller to take back some seller financing. And what that does is I don't have to go to the bank and get a loan. So if you're looking to get a property with no money down, there's a way to do it. And go in, I rehab the property using my money, so I don't have to put the $500,000 in. Maybe I'm putting $100,000 towards the rehab. We put the property back on the market when it's done, we sell it, everybody gets paid, everybody's happy. Do you like these type of videos? Do me a favor and hit that like button. Remember, by financing the deal through the seller, You can get way more favorable interest rate and terms. So right now, you know, we're looking at 7% interest. You can approach the subject with the seller and say, hey, this is going to be a short-term loan on my part. We're going to do this for a year, kind of give you a little bit of a cushion there. Can you do it at 4%? They're happy because they're selling the property. They have nothing to do with it anymore. They're making 4%. And they're not really paying taxes upfront because they didn't receive all the money. So they get their— they're going to declare that their taxes are paid once they get all their money. So that could be this year, that could be next year. Whatever it is, it's kind of a win-win situation for everybody. Make sure that you do your due diligence. Research that property, research the seller, make sure that everything is right before you take this property down. Okay, so doing your due diligence is very important. Always remember to have a clear plan from the beginning to the end, hopefully short period of time. You can see where we are at this point, 7% interest. Who knows what's going to happen in 3 months? So make sure that you account for that. So if you're paying $500,000 for this property, hopefully you've figured out that, you know, I need to buy this, let's say it's 60 cents on the dollar. So 60 cents on what the after-repair value would be. So make sure that you built in that cushion there to protect yourself. Seller financing is a powerful tool for flipping houses that can help you secure deals even though you don't have all the cash upfront. Remember to do your research, have a solid plan, and negotiate like a pro. If you want more flipping videos, click on this video right here. Book some time with me one-on-one down below and feel free to reach out anytime. I'm always here to help.