In this edition of my blog on real estate and note investing, I want to focus on selling a property via seller financing. While it is great when you get a property sold, it is even better when you successfully sell a property and get paid at closing (downpayment) and get paid for 10, 20, or 30 years. That truly is passive investing. You do something one time (sell a property) and get paid potentially for years.
What I want to focus on is the marketing message when you sell via seller financing. My real estate mentor suggests these words:
FOR SALE VIA PRIVATE FINANCING FOR DESERVING BUYER WITH A LARGE DOWN PAYMENT
Words matter in the message that they communicate! Let me break down the message in these marketing words. FOR SALE VIA PRIVATE FINANCING. That communicates to a potential purchaser that the property is not only for sale, but that the lender might be someone else than the party they call about the property. It puts a cloak of mystery about the purchase, and it might help you avoid persons who simply think they can come in with a poor credit score and no down payment. It potentially could raise the level of the person that responds to your ad.
FOR SALE…. FOR DESERVING BUYER. These words communicate that anybody and everybody might not qualify for these home It communicates that the person must have a good credit score and a good income. While everyone wants to think they are deserving, certainly not everyone is.
FOR SALE…. WITH A LARGE DOWN PAYMENT. These words help communicate that the potential purchase has got to have some money when they come to the deal. I recall one person who I sold a property to using this statement and they put down a down payment of 40%. That borrower certainly had “skin in the game” of purchasing that money which means they are more likely to make their payments. That borrower continues to make their monthly payment in a timely manner every month.
Words matter. They communicate in the phraise to potential purchaser what you are looking for via owner financing. Best wishes in your real estate and note ventures.- R.L. Wall