Millennial Real Estate Investor

85: Key Tips For Seller Financing with Nick Giulioni & David Pere

04.15.2020 - By Dan Mackin and Ben WelchPlay

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The reason many people quit on real estate investing before they even get started is because of their belief in the high barrier to entry. One such barrier is being able to finance deals with limited capital and structure deals with limited experience (see Show 82). A solution many investors favor is the ability to use seller financing. As our guests in this episode put it, seller financing is when the seller has enough equity in their property and acts as the bank (or lender) to carry a mortgage on the property.   We welcome back Nick Giulioni (see Show 68) and David Pere (see Show 35) to get an in depth look at creative seller financing. Both these gentlemen have closed on several seller financed deals and are currently working to close on even more.    The reason they use seller financing is because of the ability to utilize their creativity and knowledge about the business to bypass institutional red tape that comes with real estate investing. Whereas in traditional lending you as the buyer only control closing date and purchase price, with seller financing, you can negotiate down payment, concessions, note term, interest, mortgage payment, and so much more (as much or as little as you choose, really). And if that isn’t enough, you can actually provide better means to serve the needs of the seller and solve their problems.   Some key takeaways from our conversation with Nick and David: 1) When looking to work with a seller you haven’t worked with before, establish your credibility up front. Earn their trust and ensure you are able to help each other. 2) When drafting up a seller financed note, make sure to run it by an attorney. Some states even require using a title company. Protect the seller, as well as yourself. 3) Have empathy. Put yourself in the shoes of the seller (as well as anyone else involved). By doing so, you are more likely to solve their problems, find more creative solutions, and increase the odds of having successful business. 4) Once again, seller financing directly involves working with the seller, but this is the beauty of it. Unlike lending institutions where you are constrained to “company policy and guidelines,” people are much more approachable. Therefore, you are more likely to be able to renegotiate if need be and find better, more logical solutions to any problems that may occur.   Nick uses Notion to help him sort out his documents and David uses the Google Suite to help him with all his day-to-day activities. Nick recommends reading Atomic Habits to help you get more out of the activities you do in your life and David recommends reading Big Debt Crises in order to learn how to deal with times of financial uncertainty.   To get in touch with Nick, contact him at [email protected] To get in touch with David, visit: www.frommilitarytomillionaire.com

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