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Getting seller financing is one of the best ways that someone with little capital can get into real estate acquisitions.

Most people report the biggest obstacle in real estate to be difficulty getting start-up capital. I say, that’s because you’re doing it all wrong.

For every desired deal, there’s a process. So let’s say you are that person who doesn’t have start-up capital or access to money, what’s your game plan?

It’s important to understand that if ‘money’ is your biggest obstacle, then odds are you’re not really be honest with yourself. The truth is, not having enough money is a symptom of another problem, NOT the real problem.

So what is the ‘real’ problem?  Most likely, your approach.

Think about it and be honest about what the weakness is in your approach. Because when it boils down to it, the difference between ‘those who do’ and ‘those who try’ in real estate is all about relationships and creativity. I came out of bankruptcy three years ago and it’s never stopped me.

Look: You’ve got to have an angle (be creative!) and you’ve got to have good bedside manner (build relationships!). In real estate, you need to move quickly.

What’s the Process for Seller Financing?

When you want seller financing cause you don’t have the cash but recognize the value of a deal, put in an offer! You only ask for financing in the due diligence window (10 days for U.S. real estate).

Pull the trigger! Make the offer then negotiate terms.

That’s the process and anyone can do it.  Don’t try to get seller financing upfront…instead, make the offer, work with the seller and be accommodating, be easy to work with…then ask for financing during the due diligence. Sound impossible? It’s not – I do it all the time. You have to know what is important at different stages of the deal to close on the terms you want.

What’s Relationship Building?

When you have a property for sale that you want to buy, you need to build a relationship with the seller before you ask for financing. There are three major aspects to relationship-building that you need to focus on:

1) credibility,

2) trust, and

3) commonality with some wining and dining.

No wham-bam offers!

So be sure to take the time to put in an offer, build a relationship with the seller then ask for financing during your 10-day due diligence window.

How Can I be Creative?

Depending on the deal, you can show the seller how you need your equity for other aspects of your deal or just explain that you would need seller financing due to the capital expenditures on the property that you now see crunching the numbers or with the inspection.

Get creative and focus on building a good relationship with the seller rather than trying to bulldoze your way into a great deal.

Worst case? Seller says no and you withdraw from the deal on good terms because you’ve been communicating and have mutually decided it’s not the best deal.

Keep at it because the best case is that you get the financing you initially wanted for the deal you didn’t have capital for and continue to expand your business!

Steve Martel
Steve Martel is a serial entrepreneur with over six multi-million dollar revenue-generating companies, with two worth over $10,000,000.00 each. Steve is a real estate wealth expert, a strategic business advisor, consultant, coach, and philanthropist. He directly influences more than 100,000 entrepreneurs annually and has helped the acquisition of over $350,000,000 of real estate in the past 3 years alone.