YFP Real Estate Investing 34: Deep Dive: Seller Financing

Your Financial Pharmacist

Nate Hedrick and David Bright do a deep dive into seller financing and how it can be a win-win for both buyer and seller.

Key Points From This Episode

• Nate gets us up to speed on a rehab deal he's started work on.
• Introducing today's hot topic; seller financing!
• Touching on 'subject to' seller financing and why it's a little less prevalent at the moment.
• We first define seller finance and cover the basics of how it works.
• A reminder to send in your questions; we want to cover what matters to you!
• Unpacking a case study, we get into detail with structure and when it's the right fit.
• Transparency and putting money in straight away to get the equity up.
• Discussing the freedom to create a win-win situation for you and the seller.
• Recognizing the ways the seller will be acting like a bank.
• David shares some risk-mitigation nuggets for this kind of deal.
• We get specific with the numbers and see how David came out on top.
• How having a team ready to go made all the difference!
• Hear about the cons and risks; paying above market value, prepayment penalties, and more!
• What scenarios might make a seller interested in this, and aligning your incentives.
• David shares some parting advice on how both sides can protect themselves.

Links Mentioned in Today’s Episode

• Join the YFP Real Estate Investing Facebook Group
• BiggerPockets Podcast 527: 300 Doors, 100% Creative Financing with Pace Morby
• YFP Real Estate Investing
• Your Financial Pharmacist Disclaimer and Disclosures