OfflineLet's assume you get a seller to do seller financing (act as the bank).
You can get the seller to sell you the note your paying on at a discount or in other words take a discounted payoff. This would mean you would purchase the property for less if the seller would take a discount.
I seek a discounted cash pay off (whether it's my money or the banks) everytime I do seller financing. The seller may take the pay off because they are sick of handling month to month payments. Also, if the seller does not take the discounted payoff now they may later so I would keep trying.
As I mentioned in another post seller financing notes are bought and sold as an entire business within real estate. You are just using this to your advantage to get an even further discounted property.
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I have already gotten the seller to agree to the discount on the three properties I got, when I get ready to pay them off. He said we could negotiate somewhere between 10-20% depending on how much I own when I get ready to pay them off. But I think this note buying business is great and another good avenue to look at in the REI career
Anita
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i understand the just of it, but what i don't, oooohhhh, i think i get it, so lets say i offered $150,000 on a property and of that $150,000 $100,000 was a bank loan (cash) that i would give to the seller, and the other $50,000, i asked the seller to take a note back over 10 years with that being the ammortization, so, essentially i could say in 5 years IF i had the money, like $20,000 to offer but i still owed $30,000 he would then be DISCOUNTING THE NOTE/PAPER, right?, SULLY.
YOUR HERO, SULLY