How many of you have heard this?

“interest rates are too high to make deals work”

Sure, deals will be harder to make work with higher interest rates. But we can argue it was harder to find deals a couple of years ago. You had to compete against dozens of offers above the asking price.

So if you are losing confidence in finding a deal, remember, deals are out there.

Last September, I closed on a seller-financed duplex.

Austin is one of the most competitive markets in the US. Yet, I found this property on the MLS. Here are the deets:

• 3% interest rate

• 7% down payment

• 40-year amortization

• 10-year balloon payment

Steal these 3 key principles to negotiate your next killer deal:

1. Look for properties that have been on the market for more than 75 days

As the market changes, sellers’ motivations change.

The longer their property has been on market, the higher chance they have more urgency to sell. They may be going through a divorce, a life-changing event, or are just sick of the property.

To find a diamond in the rough, ask realtors what the seller's motivations are. Then ask, if they’ve considered seller financing?

A seller waiting for almost 3 months may be more motivated and willing to do seller financing.

2. Negotiate these four things

• Interest rate

• Down payment

• Amortization schedule

• Balloon payment

As Codie Sanchez says, “You can have the price, or you can have your terms, but you can’t have both.”

If the seller is stiff on price, ask about

• A longer amortization schedule

• A lower downpayment, or

• A lower interest rate.

Everything is negotiable.

3. Provide two financing options

Everyone loves options.

Psychologically speaking, it gives the chooser the feeling of control. Even if they only can choose between two options.

Provide 2 financing options. One with more favorable terms than the other. And let the seller decide.

Pro-tip: Time kills deals. If they are taking too long to get back to you, tell your realtor to remove one of the options.

Deals are out there!

To find them, use process goals (not results-based goals). For example:

• I will analyze 10 deals per week

• I will send an offer once per week

The key is to make it a habit to look for seller financing opportunities.

Hope this helps!

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