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How to Get Seller Financing in an Offer on a House

If your goal is to grow your passive income, then seller financing are an AMAZING way to achieve it!  But, maybe you don’t know how to ask for seller financing. Well, buckle up, baby.

I’m going to walk you through step-by-step how to make an offer with seller financing to keep your seller interested in the deal.

How to Get Seller Financing in an Offer on a House

If you read my latest post, How to Make an Offer on a House on the Spot!, then you remember that I talked about three separate offer types I like to always give to my sellers.  I explained in detail how I make the first, LOWball cash offer, but let’s be real. Not too many sellers enjoy hearing a super low price offered on their homes.  

While they understand that you, the investor, want to make some money on the house, you better believe that they do, too.  And, quite frankly, that lowball cash offer may even just piss them off….

So, here’s the rebound.  You ready?

“It’s okay, honey, I got two more offers that I think you’re really gonna like…”

Okay, so maybe you don’t have to say it exactly like that, but you get the jist.

And, here’s another thing I want to say quickly: do this in person!

Do not send emails back and forth working out your deal.  It’s bad form and will often result in lost communications and options, etc.  Just stand face-to-face with your seller and talk through the deal verbally.

Now, I’m going to skip an offer quickly and jump to the third offer I always give.  And, in this case, prepare yourself: I am going to give the seller exactly the price they’re asking for.

That’s right.  Even if they’re asking $100,000 over the value of the house, I will agree to that price, BUT on my terms.

My terms are that I will pay them a specific monthly amount for the next 10, 15, 20, 30 years….

Yes, I promise it’s legal.  In fact, banks have been doing this to us for decades.  Right?

Absolutely, Mr. Seller.  I would be happy to set up this deal with you.  And, this way, you get to be kind of like the bank.”

You better believe they love that idea….

There are a multitude of ways to structure the deal.  Maybe you pay the seller’s mortgage payment each month directly to the mortgage company, and your seller just checks to make sure it was paid.  Or, if it is a seller financing plan then you can send the seller your agreed upon amount each month for them to pay the mortgage payment.

Sometimes you may need to send the money to an escrow account.  Other times to a third party payment system.

However you set it up really does not matter.  What matters is the seller financing agreement for what money is going to that total sales price.

Keep in mind that you can also include in your agreement to ability to do lease options with the property.  I talk about this a lot in this post and this post, so be sure to check them out.

Now, let’s talk about that middle offer, offer #2.

Offer #2 is all about finding the middle ground between the two extremes.  But, there’s a finesse to making the offer.

Get ready…

Ok, Mr. Seller.  I’ve given you my low cash, quick close offer, and you know my terms for the high price, long-terms offer.  What is a number that is right in the middle between the two?”

Here’s the key: SHUT UP!

I love you, but you HAVE to shut your mouth and let the seller work this one through.  Trust me, ladies.

If you really want to be amazing at making in person, verbal offers, you have got to learn the importance of shutting your mouth and letting that awkward silence just hannngggggg in the air until you can feel it in your bones.

Yes, I know. IT SUCKS.  It makes you feel like you’re not in control, and that things are going to fall apart.  But, trust me, and SHHHHHH.

So, let’s practice:

Mr. Seller, what’s the difference between this high cash offer and the lowww cash offer?”

When you are quiet, the seller will TELL YOU an offer price for offer #2! They will situate the seller financing on their own!

Talk about taking the pressure off.

And then you can work to determine a perfect length of term for the monthly payments to the seller.  5 years is often a great place to start….

Ladies, it’s beautiful.  When you start learning this process of sandwiching the offers, you are going to find how sweet this process really is.

You are letting the seller know some super awesome options, and even including them in the process of setting the offer price

If any of this is confusing to you, or you have questions, please make sure to shoot me a message in the comments section.  I’d love to hear from you.

Don’t forget your FREE gift to get you started….

If you’ve learned a ton from this info, be sure to click through to get your FREE 10 Steps to Your First Deal.  This simple PDF will provide you with a clear process to making that first deal happen if you are truly serious about building your financial freedom.

Click here to get your copy.

Don’t Be Afraid to Make the Offer!

I get it, ladies.  This is all new and a little scary for you since you’re just getting started.  But, YOU CAN DO THIS!

Don’t let fear get in the way of your future.  Get serious and determined to lean into this discomfort of these new things and you will be pleasantly surprised at the future you build piece by piece.  Get to it!