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So real estate investing is near and dear to my heart, having a seller holding paper.
Sounds to me like the Garden of Frickettit Eden.
Chris Craddick, he's with Uncommon Real Estate.
You hear that Tuesdays here on KGCI Real Estate on air.
He's on the presenter stage.
He's doing some breakout sessions for agents all over here at EXPCon here in Miami.
So Chris, thanks for checking in with us.
Let's soar up to 20,000 feet for a little bit.
What is seller financing?
Well, there's a ton of different options for seller financing.
financing, the easiest is once you realize that almost 50% of homeowners do not own a mortgage,
do not have a mortgage on their property, then you can really understand that there are so many
options out there, right? So seller financing is just this, that instead of going to a bank
to get money, you're going to a seller to get money. And you don't need them to actually write a check.
they can just come up with a payoff agreement, just like a bank would, using the equity that they have in their home.
Now, I've had success as an agent.
I've had success securing seller financing for my buyer clients, particularly doing off markets,
but properties that are listed on the MLS.
What are some tips for success that a buyer's agent could implement today to maybe have that conversation,
particularly as they're interfacing with an agent who may not understand how seller financing could work and some of the benefits to it that a seller could realize, particularly like maybe like capital gains or situations like that.
Yeah. So there's a lot of different opportunities there. And, you know, the reality is there's a lot of data sources out there that you can get that will let you know if a property is paid off. If there's a mortgage on it. I mean, obviously you can look in the land records, but you can just.
you know, order data programs that will let you know so that you can make offers,
especially if something's been sitting on the market for a while.
This is actually the tool that I like to use the most when thinking about seller financing
is whenever you are creating or crafting a deal, right, there's two parts of it.
There's price and there's terms.
So one of the cool things about seller financing, and I've seen deals like this work, right,
where somebody is asking for maybe, let's just use the number 650 on, like they're asking for
650. Maybe it's slightly overpriced. Well, you can go to them and say, hey, look, I will pay you
more than that. I'll pay you 800, but over however many years, and I'd like either an interest
free loan or a very low interest loan. I mean, there's some IRS rules about the percentage that
you're allowed to take, but a super low interest loan on the property so that you can, you know,
then jump into a property. And over time, when you realize how much you actually pay the bank
and interest, you realize that you can give the seller more than they want and you're actually
paying less over time. You can also realize, you know, so many gains in the fact that
you can keep a payment much lower if you're paying just straight principal, you know,
or if you're just paying interest only or instead of how a bank does it where you're amateurizing
over 30 years. So it just gives you so many different opportunities to craft something creative
that works with the seller and works with the buyer and creates that win-win opportunity.
And for a lot of the agents that are, you know, listening to KGCI here this morning,
They're probably going about their day.
They're doing their thing.
They're probably not there at EXPCon.
For those that maybe want to connect with you so that way they can learn a little bit more about this, how can they do that?
Yeah.
So, I mean, I do have a podcast on Coma Real State and we're on the radio program now.
So you can reach there or you can also reach out to me.
My Instagram is at Cred Rock or old cheesy high school nickname.
terrible terrible handle and that's probably the easiest way because that's the one that I personally
still check those messages.