Our EXACT Methods For Finding Seller Financing Deals [Copy Us!]

If you want to lose, learn from losers. If you want to master the game, play with masters. That's been our motto from the beginning. That's the first thing that we do.

But yeah, that is just how simple this game is. Today we're talking about the 5 ways to find seller-financed real estate and 3 ways that you definitely won't find great seller-financed piece of real estate.

Hello, YouTube. I'm Christian. This is Cody. Welcome back to the channel. Excited to get rolling our first topic we're going to cover are the 3 ways you don't do this, because you can do it all the right ways, but there's a ton of stuff out there where people are saying, hey, do X and Y.

There's 3 things absolutely wrong.

Yeah, there's 3 things that people love to do that we absolutely disagree with, and we'll get into why. The first one, I think, find a distressed property so you can negotiate on the price. I hate this, Cody. Why do we hate this?

Well, we buy from people that have done well in the game because we want to learn from them. You can buy a piece of real estate, really easy to buy real estate. But what are you learning when you do it? Because if you're not staying intentional, you're not learning, you will not grow. Even if you make a little bit of money. So why would I want to learn from someone who got in a place where they're distressed? Why would I want to buy from somebody who has completely flunked out of this real estate game? I'm not going to learn anything but bad practice from them. We don't buy from distressed sellers.

If you want to lose, learn from losers. If you want to master the game, Play with masters. That's been our motto from the beginning. That's the first thing that we do.

But yeah, that is just how simple this game is.

Driving the streets looking for distressed properties, calling on the beat-up building. That's someone who does not know how to manage real estate. If you want to buy that one building, sure, you can do that.

You can make some money, but don't go there if you're trying to learn how to play the seller financing.

Yeah, if you want to scale, that's not a relationship that's going to take you to the next level, just period. Uh, the next thing is wholesalers. People talk about this all the time— find a great wholesaler. I know most people saying that own a wholesaling company.

Yeah. And look, wholesalers are not the biggest players in the space. They're typically starting there because they think they can make quick money, and they absolutely can, but they're not experts at buying real estate. If they were, they would own the real estate. You're not going to get an amazing seller finance deal from wholesalers. That is a fact.

Any deal worth wholesaling is a deal worth owning. So there's some reason that they're not buying it themselves. If you have this fantastic deal, like if you're Cody and I, we run into great deals, it's not for us. I could put it under contract, I could wholesale it. What I typically do is I call a friend in the area and I say, hey, I just ran into this awesome opportunity, you should check it out. That is what a friend does. That's what a master of real estate does. I don't need a fee just for finding a deal. Finding a deal is super easy. Have you ever heard of Google Maps?

Every deal you could ever want to buy is on Google Maps. We're going to talk about that later. What's the third one?

Uh, the third one is door knocking. There are a bunch of influencers who go How many doors did you knock? The whole model is just make calls, knock doors, make calls, knock doors.

Absolute waste of time. You can call up real estate agents and they'll do it all for you for free. You don't even have to pay $4 an hour to someone out of state. Door knocking is an absolute waste of time. Can you make money? Yes. But just because it makes money doesn't mean it makes sense. That is not the way to play the game at the highest level.

In addition, going back to our first point, if you want to play with masters of the game, you want to play with the big fish, you're not knocking on their door. Yeah, hi, I want to buy your house. Like, no. You own $20, $30, $100 million of real estate and I'm gonna knock on your door and you're gonna get me in the game? Absolutely not. Let's get into how you actually do this. And the first thing does start with calling those owners. It is a fact, we cold call. How much would you say we cold call? On an average week, how many calls do we make?

A few, I mean, I could count it on my hands.

Yeah, I'm gonna say one a day. If I average it out, it's gonna be like 1, maybe 2 calls a day.

And we don't really call on the weekends, so I mean, it's— yeah, probably count it on my right hand.

Yeah, let's say easy math, let's say we call 5 times a week. That doesn't feel like a job to me.

No, not, not at all.

I'm not making 100 calls a day. We're not blowing up everyone's phone.

And we're buying more real estate than most of the folks that are doing 100 calls a day.

Yeah, you just have to call and you just figure out, okay, who owns multifamily in my market? So before you do any of this, you start with a goal, like where do I want to go? And And what market do I wanna be in?

Yeah, depending on where you wanna go. You wanna go to Mars, you're gonna need a different vehicle than if you're going to 7-Eleven down the street. You may need to build a rocket. So you need to figure out how big of the multifamily do you have to buy, and then you figure out who are the players. And we do that through Google Maps. We have a video, How to Find Any Property Owner Ever, check it out. But you just figure out who are those players and then call 'em up.

Yep. Very, very easy to do. And those players, you're trying to find the people who've done what you're trying to do. If you're trying to buy your first 12 to 20 unit building, you're gonna look for 12 to 20 unit buildings. Revolutionary, right?

Who owns it? Yep, not you. So figure out who owns it and then figure out how to make that you.

Yep. And you're going to talk to them, and we get into this in other videos too, but you're going to talk to them about how they got there, not about buying their property. That's, that's not how you play the game. If you're doing that, you're doing it backwards. Learn how they got there. They will help you get to the next step. I absolutely promise you. Don't ask for the sale.

They'll teach you how to do it. It's the best thing on planet Earth. It's so easy. You learn how they built their portfolio and then you repeat it.

So source number 1, the people who own the real estate. Who finds the most real estate deals professionally? Real estate agents. They are out there trying to find deals. And people talk all the time, "I don't need a real estate agent." Why would you want to do that work yourself?

That's awful. That's how you blow a ton of time. Talk about highest and best use of time, it's not door knocking. It's definitely not making 100 calls a day. I've got a real estate agent who got us an off-market 10-plex seller financed.

Thank you, Eric.

Yep, thank you, Eric. Foundation Group. Bubble Man. He also got us a 12-plex, and that 12-plex, we're under contract on it right now. We're working on closing that out next month. Phenomenal deals. Also seller financed, low interest rate, long-term fixed rate debt. It solves for how do we buy it, how do we never lose it. Great deals. The amount of phone calls he makes for free, and then the seller pays him when we buy stuff, is phenomenal.

And to be fair, we're closing another deal with him right now. He makes a lot of money making those calls for us, but I don't want to make them. That's not the job that I want to do. I want to play manager. I want to build my portfolio. When I started this, I wanted to retire my wife. All these brokers and owners helped me get there in the first 12 months of really grinding and buying seller finance deals. Yeah, crazy. I'm saying that out loud right now and I'm like, wow, that was, that was actually 12 months from when we bought 38 to when my wife was retired.

Owners and brokers are great resources. Don't go around this. You can work with real estate agents and they can help you make a ton of money. They'll make a ton of money in the process, but don't worry about that. They're going to get you the opportunities.

Now, number 3, if you're just looking online, there's a lot of wrong ways to do this. You can make this very, very simple. With seller financing, the big superpower there is you're not going through a bank, which means you don't need to negotiate on price. Everyone who is looking at a deal on LoopNet, CREXi, Zillow, everyone who was looking at it was probably looking at it conventionally. So while they're old listings, most often they're stuck on price because that is the only term you can negotiate with the bank. This is where you get to go, okay, if we assume the price is fixed— so say this has been 90 days, is kind of my gold number— but if it's been on market for a while, 90 days or more, 100 days or more, you've seen this property, no one's bought it, we like to solve for for, okay, let's say we don't change the price. What terms, interest rate, and balloon, or special clause, would allow us to buy this deal? If we've already thought about this a couple different ways, we make that phone call, we can call and say, hey, I saw this deal, I'm interested in buying it. I don't have any problem with your price at all. You're likely one of the only people who've called and said, I love your price. Ta-da!

Yeah, nobody loves a high price. Except for the people that understand that terms are everything. Price is one thing, terms are everything. And if you understand that, you don't have to play by everybody else's rules. Yep.

The cheat sheet for that in 3 seconds is long-term fixed rate cash flowing debt.

Yeah. My game doesn't stop when the music stops. Let's just keep playing the game. If you can go around the conventional bank box, price is irrelevant.

That's pretty much it for the old listings. Just make the calls. If you're the one person doing it and you've come up with a different idea to hit the seller's objectives, have that conversation, figure out, make sure that's actually the objective. But that's really, I would say we're close to 50% of the deals we've done have been done exactly that way.

Now let's talk about networking events as number 4, because networking events are a place where you can meet with owners. Understand that most of these are a liars club. Most people like to flex, and the thing about the flexing is they're usually not as big as they say they are, and if they are, they just have a big ego and it's hard to learn from them. So networking events, you got to take with a grain of salt. However, you can meet with big owners. They're typically going to be the quiet people in the room.. But if you can build relationships with those people, you can absolutely springboard into a couple opportunities, be it seller finance or not. Those are great ways to get into opportunities.

100%. I've met so many people, some of the people we partnered with, capital partners we've met at various events, some of them paid, some of them free. It doesn't really matter. Just being around investors and talking real estate is going to make you better. Another added benefit, Cody and I just met with one of our investors. There wasn't a networking event, this was just a meeting, but it's the same type of thing. We go in public, you meet with someone, you talk real estate. Just getting in the habit of having these discussions all the time, you're going to be able to communicate ideas better because you've said them 1,000 times. And it's an underrated benefit of you're around it, you're just going to start getting better talking about it. The last thing is joining a community. Now there are paid mentorships, we have our own group, the multifamilystrategy.com, it doesn't have to be ours though. But you find groups that align with your goals. If you absolutely want to wholesale, which I'm not a fan of, but if that's what you want to do, great.

You won't buy any real estate.

Yeah, but you can make some money, but you can find a group that does that and you become part of that group and you're going to accelerate your timelines. If you want to learn how to buy distressed properties, you're not learning that from us.

Absolutely not.

But I can think of a lot of people where you can try their mentorship groups. There's probably a community there that's really good at buying distressed properties. If you want to buy seller-financed or creative deals, You can join a group like ours. I'm sure we're not the only one, we're just factually the best. But you can join a group, be around other people who have the same goals, the same objectives, moving the same direction. You're going to go astronomically faster. We've actually had people in our groups who have found a deal, their financing fell apart, and other people from the group stepped up and said, we loved that deal, we followed you through the whole journey, we want to step in and fund it. The synergies happen when you get in a community. It doesn't have to be ours, but find a group of people doing what you want to do and make sure it's relationship-based.

It's not transactional. It's not little deals. The story is worth more than the real estate, and the story comes out of the relationships that you build with the people around you. So we talk about these networking events, we talk about the community. Relationships worth more, the story is worth more. And if you put that at the forefront of everything you do, that is ultimately how you get these seller finance deals. So that's it for today's video. But these are the ways to not find great seller-financed opportunities and the 5 ways to find fantastic seller-financed opportunities. If you like this, make sure to hit the subscribe button, check out themulti-familystrategy.com, and we'll see you next time.