Christian Osgood breaks down seller financing in three steps: set a monthly cash-flow target like $15,000, research what the seller actually needs by talking to other owners, then structure the deal with terms that hit both your goals and theirs.
Chapters
How to do the perfect seller financing deal in 3 steps. So step 1, you need to identify your goal and put a monetary value to that. When I wanted to retire my wife, it cost about $15,000 a month in cash flow to live the life that we want to live. Step number 2 is you need to understand what the other party wants. There's other owners in your market. You're going to network with them and learn what they are trying to do and how they built the portfolio that they have. When you understand their goals and there's a transaction on the table, now they know what you're trying to do, you know what they're trying to do, and whatever offer you put together is going to hit everyone's metrics. Last, you need to buy on that long-term cash flowing picture. Interest rate debt. It makes it work in any single market. If you buy that on those terms, every time you close a deal, you make more money, you move closer to your goal, and you do it over a long period of time. You get what you negotiate. So negotiate the right debt product. Those are the 3 steps. Follow for more.