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here look at this third property like in the last four months I take you inside but the seller's down a two-week lease back but no banks involved eleven percent down and zero percent interest and the sellers they were happy with the price too I mean what are the chances better than you think if you know what you're doing so I started seller financing to build my cash flow on Empire about 17 years ago and it was an absolute game changer for me after I filed bankruptcy in 2001 when my record label went belly up and I was something that the banks called unlendable you know I probably would have been lucky if Wells Fargo even let me in the door at that time A lot has changed for me since then more assets more money my credit score it's back up above 700 but what hasn't changed for me is my preference for seller finance regardless of how high interest rates go sellers will always do better so if interest rates they got you bummed and Banks they want too much of a down payment and sellers if they want too much for their property I'll show you how I structure this deal with 11 down and zero percent interest Jerome jack up the rates pal you're definitely going to be scratching his head on this one you ready let's go imagine this you find a great income property but instead of going through the usual bank loan process you strike a deal directly with the seller and bypass the clumsy loan process all together no credit check no appraisal no contingency that's seller financing and with it I get to skip all of that stuff seller financing empowers me to pay the seller in affordable installments just like a mortgage but without all the red tape and paperwork I think about like buying a house with an IOU to the seller now I know what you might be thinking you can buy a house with an IOU how is that even possible or maybe you've tried this before but the seller always seems to say no well that was my experience too for a long time and here's what I learned that allowed me to start hearing more yeses and doing several of these a year mistake number one that would get in my way I would bring up seller financing too quickly and I scared them or two I made it too complicated and I confused them or three they needed all of their money for something else and I just didn't hear it I ignored when I stopped making these three mistakes I saw a noticeable increase in the number of seller finance deals I got across the Finish Line like three to one it was significant one other shift in my mindset I had to make and that was to recognize how seller financing benefits both parties it benefits the seller more than most people think and it just takes a minute for most sellers to understand how you just got to break it down to them but once they see that they can get more money steady cash flow some Nifty tax benefits no agent commissions no appraisal needed no lengthy escrow period a significantly simplified process and that they are secured by a tangible asset the right sellers are down and as a buyer many of those benefits are my benefits too not to mention I get easier qualification and flexible terms and you know how much both parties save by removing the man from the equation enough to make it worth it for buyers and sellers to play nice together now there are different types of seller finance deals the most common being either a land contract a lease purchase or a mortgage note and there are some nuances to each of them but they all really boil down to me giving the seller some money now and then giving them the rest later how much now and how much later depends on what I negotiate with the seller and that's where the structuring of a seller finance deal begins with the negotiation and proposal of price and terms and that's how I buy real estate by either my price and the seller's terms or my terms and the seller's price I only need control of one or the other to put a good deal together let me show you with this it's my deal Dynamics axis TM the vertical line represents the price I'll pay for the property and the horizontal line represents how I'll pay the price it's almost a given that the seller wants all their money now the how so that leaves me with how much money I'll give them and for a deal to make sense financially it leaves me no real choice but to start down here with the super low price and as you can imagine sellers typically don't like that price and so they ask for more now instead of going back and forth over the price like most of investors do I will typically and reluctantly agree to the seller's price and I'll ask for more time to pay it I found that I'm much more inclined to get a seller finance deal done when proposing it in this order it's like a first date I don't greet him at the door with a big sloppy French Kiss I wait a bit until at least after dessert right if I go straight into asking for seller financing I get shut down much more often so I marinate on the price for a bit because that's really the only thing most sellers understand anyway and if I reach an impasse there I then introduce the terms but not how you might think you see when it comes to structuring a seller finance deal there are three sets of terms that I incorporate to complete the structure the first set are the terms of the sale and it's either going to be a low price with a single installment or a higher price with multiple installments then next I've got terms of the loan and here's where I'll negotiate how the installments will be paid and here I've got options I've got lots of options is here then I've got terms of the documents and most investors they miss this one because they think the deal is over there's a deal after the deal that nobody ever told him about until now I did an entire breakdown of the deal after the deal in this video right here and I'll put a link in the description too and I'll even give you my documents in that video but only if you click the like button on this one so this deal right here I found it using deal Engineers AI Predictive Analytics sent them a handwritten letter using a new QR code strategy I'm testing the seller called me within a week of me sending the letter I used my nine point seller interview to get the information that I needed and built some rapport with the seller and they weren't too excited about what I proposed but they asked me to follow up in a month which typically means thanks but no thanks and when I got back to the office I put them in my green apple follow-up system which immediately sends them a triple offer letter in this letter the first offer is the deeply discounted fast cash offer that's right here the second offer is my wholesale priced 90 day offer here and the third offer was full market value of five percent down and the ballast divided into 300 equal monthly payments zero interest it's simple I just recap in the letter the different price and terms that we discussed when they told me they wanted to think about it the seller called me about a week after that and long story short they wanted 15 percent down instead of five we settled at 11 and we wrote it up like this this is just a standard purchase agreement but with a few additional Clauses that preps us to move forward with regardless of which offer they wanted they're not necessary Clauses but but they streamline the process and I structured it like this the price goes here just like it would on any other purchase agreement and then the terms in here and I just write them out as I and the seller understand them there's no need for any complicated legalese here it's 11 down ballots to be divided into 300 equal monthly payments so we both signed I turned it into the escrow officer a along with my promissory note now this is important if you want to take advantage of the deal after the deal I was talking about the terms of the document and it can be a deep rabbit hole that I don't want to go down now but I did put the link to that video in the description if you want to check it out now from here everything happens in the same way it would with any other deal I ordered a physical inspection escrow ordered title and once everything checked out I brought in the down payment we both paid our closing costs and I handed the seller finance mortgage over to a third-party note Servicing Company who's responsible for the collections and the accounting of the mortgage my LLC is on title to the property the seller has a loan attached to the property for collateral exactly like a bank would do the only difference between this deal now and any other traditional transaction is instead of sending payments to the bank I send them to the Servicing Company and the Servicing Company deducts one percent and sends the rest to the seller and that is how I structured this seller finance deal with zero percent interest it really opens up new avenues even if you do have access to traditional fire essay besides it's just better paying a seller directly than a bank Banks make enough money so let's keep it in the family that's my motto if you want some additional help with this there's a link for that in the description too or just hit the Subscribe button I'll be back in a few days with more cheers peace and blessings God loves you and so do I take care foreign