Seller Finance Concepts For Property Investing

Dec 15 / David Lee
There is such a vast amount of acquired knowledge that may look simple when listening to “experts” roll ideas off the tip of the tongue, but it can be intimidating when you are suddenly face to face with a buyer/seller. Compare it to learning a foreign language where you know the basics, yet as soon as you converse with a native speaker, your mind goes blank immediately.

“With Cashflow 101, you are learning with small deals to start off with, you’re getting the concepts, you’ve got to learn how to manage your finances, and I just found when I was buying and selling houses in the early days, I was just playing Cashflow 101 and I was doing it in the real world. - David Lee

Concept #1 - Knowledgebase

Learn one specific strategy for one specific area. Define your system model. Learn how to explain yourself in non-technical language with all jargon removed. Your online system must answer objections and highlight the benefits up front. Don’t feel obliged to tell everything right away, based upon your level of experience and number of past testimonials. Start small and THINK BIG!

Concept #2 - Negotiations (The Sales Cycle)

Make this model a part of your persuasion DNA. Even if you have follow-up meetings and believe the deal is wrapped up, revisit this template in case the other party has since gone back into logical mode after having spoken to friends, family or trusted advisors. You only advance from 1) Rapport to 2) Disturb, on to 3) Solution, and finally 4) Close when you have clear feedback to do so. Use this model as a high-level overview to the 8 essential questions in your other course modules.

Concept #3 - The Value Of Money (Over Time)

You are exchanging time for money with the seller, often bypassing higher up-front and ongoing costs with a commercial lender and making payments in ever-diminishing currency value the longer the transaction goes. The objective is usually for the real-value capital to far outweigh the original purchase price agreed at the beginning. You can negotiate how to make payments, via a lump-sum deposit, capital-and-interest or interest-only payments, renewal extensions and payment terms.
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