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There are usually two types of seller finance. The first is subject to investing. This is when you buy the property but keep the seller’s mortgage in place. You would then start making the payments. We aren’t discussing that in this video. I will make another one on how to use that strategy.
This video is about pure seller financing also known as Owner Will Carry (OWC). With seller financing essentially the seller becomes the bank. Typically you would buy the property with cash or a traditional bank. But this gives you another strategy to purchase when those options don’t make sense.
With seller financing there are five different terms to negotiate: Purchase Price, Down Payment, Interest Rate, Term, and Amortization. Even if you pay market value, you’re able to make it a deal if you can get favorable financing terms.
So many house flippers and wholesalers ignore this strategy. Their only way to get a deal is through a low cash offer. If a seller wants market value then they try to list it. Using seller financing instead can make the deal so much better!
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