How to Market and Screen Buyers for Seller Financed Land

Transcript of Module 3, lightly edited for readability. The video was recorded before we passed 250 notes; the figures on this page are current.

Welcome to module three. You've got a good property, you priced it fairly at market value, and now you need to find buyers. This is where seller financing really shows its power. You're about to attract 10 times more interest than if you only accepted cash. But more interest means more calls, more emails, and more time wasters if you don't filter effectively.

In this module, I'm going to show you exactly how to market your property to attract qualified buyers and how to screen them in less than 30 seconds. Here's the most important marketing tip I can give you. Start your listing with seller will finance and or owner financing available in all capital letters. Why?

Because buyers search for properties using keywords. When someone goes on Zillow, LandWatch, Lands of America, Facebook Marketplace, or wherever you're listing your property, and they type in seller financing or owner financing, your listing needs to pop up. If those words aren't prominently in your listing, and especially if they're not in the title or first line, your listing might not show up in their search results at all. And even if it does show up, if seller will finance isn't immediately visible, they might scroll right past it. So make it obvious, put it in all caps, put it at the very beginning of your listing. Make seller financing the headline, not a footnote buried in paragraph three. Now here's what you should not put in your listing.

specific terms. Don't say 10% interest, eight-year term, 20% down. Why? Because not all buyers will qualify for the same terms, and you want the flexibility to adjust based on their credit score. If you advertise 20% down in your listing and then a buyer with a 600 credit score calls, you need to tell them they actually need 30% down based on your credit matrix. Now they feel like you've changed the deal on them and you've created friction. Instead, just say seller will finance or owner financing available and leave it at that. When buyers call, you'll discuss terms based on their specific situation. This gives you flexibility and prevents misunderstandings.

The goal of your marketing is to generate inquiries from people who are interested in seller financing. You'll qualify them on the phone.

When a potential buyer calls or emails about your property, you'll need to quickly determine if they're qualified or if you're wasting your time. I use two simple questions that tell me everything I need to know in about 30 seconds. Question one, do you have 20% down? This is a yes or no question. If they say no, the conversation is essentially over. You can politely explain that 20% is your minimum down payment requirement and wish them luck in their search. If they say yes, great. You move to question two. Question two is, how's your credit? Notice I'm not asking for a specific credit score. I'm asking an open-ended question that gets them talking. Most people will give you a general idea. It's pretty good.

or it's not great, I had some issues a few years ago, or it's excellent, over 750. Their answer tells you where they probably fall in your credit matrix and what down payment they'll actually need. If they say their credit is excellent, they probably need 20% down. If they say it's not great, they probably need between 30 and 50% down. Here's an important note.

Some buyers will push back when you ask about credit. They'll say, why do you need to know my credit? Or I don't want to share that information. In my experience, only buyers with low credit scores who know they won't qualify are the ones who object. People with good credit are happy to tell you about it. So if someone gets defensive about the credit question, that's definitely a red flag. Stand firm on this.

you need to see their credit to determine their borrowing history. Explain that you're providing financing and just like a bank, you need to understand their credit worthiness. It's a reasonable request. If they have 20% down and reasonable credit, then you can move forward with providing more details, negotiating terms, and ultimately getting their full credit report before closing. These two questions.

Do you have 20% down and how's your credit will save you countless hours of dealing with unqualified buyers? You might be wondering, should I also verify their income, ask for pay stubs, check their employment? I don't, and here's why. We keep it simple so we can give buyers an approval the same day or the next day, because as we all know, Time kills all deals. When you start asking for income verification, tax returns, pay stubs, and employment letters, deals fall apart. The buyer loses interest. They find another property. Something comes up. The momentum dies. But when you can tell a buyer, send me a screenshot of your Credit Karma and I'll give you an answer today, you create urgency and excitement. They stay engaged.

and the deal moves forward. A credit score tells you how they've handled debt in the past. Down payment tells you that they have skin in the game and aren't likely to walk away. Remember, the best predictor of future behavior is past behavior. If someone has consistently paid their bills on time and they're putting down a substantial amount of money, the odds are very good they'll continue making their payments.

This simplified approach is one of the reasons seller financing works so well. You're not drowning in paperwork and documentation requirements. You're making fast, common sense decisions based on credit history and down payment. And because you can move quickly, you close more deals. Here's a mistake I see new seller financing investors make. They get excited about the first buyer who shows interest and they compromise their standards.

A buyer calls and says, I only have $1,000 down, but I really want this property. Can't we work something out? And because you're eager to make the deal, you say yes. Don't do this. If you're buying good properties and pricing them fairly, you don't need to give your land away to the first person who comes along. Since seller finance properties are rare, you have the advantage.

Buyers who want seller financing don't have many options, which means you can hold to your standards. Be selective. Wait for buyers who meet your credit and down payment requirements. These are the buyers who will actually pay you back. Remember, seller financing isn't a charity. You're running a business. You're taking on risk by providing financing, and you need to be compensated for that risk.

through proper down payments and reasonable interest rates. When you hold to your standards and only work with qualified buyers, you'll have far fewer headaches, far fewer defaults, and far more successful transactions. Let me recap why this simple two question filter is so powerful. First, it's fast.

You can qualify or disqualify a buyer in 30 seconds on the phone. You don't waste time negotiating with people who can't qualify. Second, it's effective. Credit and down payment are the two most important predictors of whether someone will pay you back. You're not missing important information by keeping it simple. Third, it keeps deals moving. By being able to give same-day approvals, you maintain momentum and close more deals.

Time kills all deals, so speed matters. And fourth, it protects you. By setting clear standards and sticking to them, you're ensuring that every deal you do has a strong foundation. Remember, market your property with seller will finance prominently displayed, but don't list specific terms. Screen buyers quickly with two simple questions. Do you have 20% down?

And how's your credit? Be selective and don't compromise your standards just to make a deal quickly. In the next module, we'll dive into the credit matrix in detail and show you exactly how to determine what down payment each buyer needs based on their credit score. Let's keep going.