The American Education Institute

SUPPLY WHAT THE SELLER REALLY NEEDS

This is one of many variations on the previous method.  Sometimes there’s a particular reason why a seller might become anxious to sell.  Sometimes he or she is merely interested in something else besides real estate or in making a profit or in taking away cash from a property sale.  But no matter what it is to your best advantage to find out exactly what the seller really needs.

Maybe the seller is selling in the first place to acquire something different or to pay off a debt or maybe just to take early retirement.  If the first is true, you might just acquire it beforehand and after that as your down payment.  If the second is true, you could provide that you will assume the seller’s debt.  If the last is true, you could help the seller see the benefit of a larger continuing monthly income (by financing your purchase 100%) rather than relying on one payment only (via traditional financing) upon which the seller may be obligated to pay much more tax.

Perhaps the seller has “maxed -out” a credit card (and you have not).  This could mean that the seller simply cannot purchase something he desperately needs — a new car, perhaps, or furniture for this personal residence — or may only desire and believes he deserves — like a long vacation or a trip to Europe.  With good credit, you could make the purchases yourself, or pay in advance for the travel, in exchange for a down payment with the seller then holding your mortgage.

If the seller is already in a great deal of debt — perhaps he owes a doctor or hospital for something not covered by insurance — you could arrange to make a good offer on his property by first simply contacting his creditor.  You might be able to assume the debt or pay it off in full using your credit (and thereby obtain perhaps even a discount from the creditor) or you could offer to cosign the seller’s debt and use that as your bargaining chip to secure 100% financing from the seller.  There are seemingly endless possibilities.

The bottom line here is:  never assume you know what the seller needs; find out for sure — and from the seller himself — what it is exactly.  With this method, your most important technique is simply to talk to the seller and , of course, to ask a lot of questions.

Dr. Eric T. Martin / 100% Financing When Buying Real Estate / 1-14-10