• Pace Morby

The Perfect No Money Down Seller Finance Deal

Updated: Apr 15

You know how in your favorite sitcom, they’ll do a flashback episode?


Well today, I’m going to do a flashback episode for you; a creative financing flashback, if you will.


This flashback is about my ALL-TIME favorite seller financed deal, a deal where I am NEVER selling the house I got.


How I Got the Best Seller Finance, No Money Deal Ever


This deal started with a wholesaler.


This wholesaler had come to me and said, “Pace, this is a dead lead. I’d love to see you do some creative financing here.”


Challenge accepted.


As I learned more, I realized that this was a typical situation for seller financing; the asking price for the house was $100,000.



After repair value was about $110,000, the house’s value was about $80,000, and the repairs itself would be about $20,000.


The homeowners were an older couple named Dale and Susan. They owned the house and had some family members living in the house.


The family members were not paying rent.


Side note – never rent to family!


When I finally spoke with the couple, they had been getting calls left, right, and sideways from wholesalers.


These wholesales wanted to buy the home for $50,000, which wasn’t going to work for either Susan or Dale. After speaking with Susan, she states that she wants $90,000 for it.


Now, obviously this wasn’t going to work. So I asked if Susan was open to doing seller finance.


What is Seller Finance?


If you don’t know what seller finance is, essentially I would take over the property and take care of the deadbeats that were living in the house.


For this, I would get Susan $100,000 instead of $90,000. She agreed, but wanted $20,000 and 8% interest.


That wasn’t going to work for me, but I suggested I would pre-pay her the interest she wanted if she agreed to $10,000 instead with 0% interest.


Susan agreed, which was already a pretty good deal.


But wait…there’s more!


The deal got better.


I called Susan and told her I was a little strapped for cash and asked if I could finance the initial deposit of $10,000 over the first year.


Again, she agreed to this deal and I was able to get the property for $375 in payments and another $275 or so in insurance and various fees.


After securing the home, I spoke with the family members who weren’t paying rent. I told them that I would be kicking them out in 2 weeks if they didn’t start paying $1650 for rent.


So how does this flashback end?


Well, in the present, I spent $650 to purchase a property that nets me $1,000 a month. And every 6 months, I send $5,000 to Susan and Dale.


Everybody wins!


That’s how easy creative financing can be!


If you want to learn how to use creative financing, don’t wait. Come join our Subto community.


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