The meeting provided a comprehensive overview of how to acquire a rental property using owner financing with as little as $100 down, bypassing traditional banks and credit checks.
Key steps discussed included identifying motivated sellers with free and clear properties, building rapport, negotiating terms, and ensuring both parties are protected through proper documentation.
Practical tips, resources, and platforms for lead generation and cash flow analysis were also demonstrated.
Action Items
Owner Financing Strategy Overview
Owner financing enables buyers to purchase directly from sellers without bank involvement, credit checks, or licenses, by negotiating terms and making payments to the seller.
The method targets sellers with free and clear properties, often motivated by the desire for monthly cash flow, tax benefits, or relief from landlord responsibilities.
Successful deals depend on finding and solving sellers’ problems, structuring win-win agreements, and performing due diligence on property profitability.
Step-by-Step Approach
1. Sourcing Leads and Assessing Seller Motivation
Focus on properties that are fully owned (free and clear), at least 30 years old, and whose owners live out of state (absentee owners), as these signal higher motivation.
Utilize platforms like Investor Deal Pro to apply filters for property type, age, equity, and ownership status to generate lead lists.
Conduct skip tracing for owner contact details, understanding that multiple outreach attempts may be necessary to build trust and establish a relationship.
2. Engaging Sellers and Gathering Key Information
Initiate contact through compliant methods (mail, text, email) and use open-ended questions to learn about property information, condition, needed price, and openness to owner financing.
Four main information points to gather: property details, property condition, the seller’s actual needs (not just wants) for price, and willingness to accept profit via installment payments.
3. Structuring and Presenting Offers
Make affordable offers, e.g., $100 down and monthly payments that ensure positive cash flow compared to local rent levels.
Example structure: Offer $100 down, $900/month to the seller, with the property rented at $1,500/month over a five-year term with a balloon payment.
Adjust terms based on negotiation and property cash flow analysis using tools like Rentometer; only proceed if cash flow meets or exceeds the 1% rule for monthly rent-to-purchase price.
4. Due Diligence and Closing Process
Verify property value and rent comparables to ensure deal makes financial sense.
Close deals using appropriate legal instruments (land contract, promissory note) and a third-party payment processor for transparency and documentation.
Always put agreements in writing to protect both buyer and seller.
Important Considerations and Best Practices
$100 down offers are accepted by a minority of highly motivated sellers; most will require more.
To increase down payment if needed, consider personal lines of credit, partners, or private lenders.
Be transparent about intentions, do not overpromise, and ensure property will cash flow before committing.
Always maintain legal and ethical standards, providing win-win solutions and fostering trust.
Decisions
$100 down owner financing method is viable for acquiring rental properties — Targeted at highly motivated sellers; requires careful lead sourcing, negotiation, and due diligence.
Open Questions / Follow-Ups
None explicitly stated; ongoing need to remain compliant in outreach methods and review local/state requirements for contract structuring.