A Seller Financed Land Deal, Start to Finish

Transcript of Module 13, lightly edited for readability. The video was recorded before we passed 250 notes; the figures on this page are current.

Welcome to module 13. We've covered a lot of ground in this course, screening buyers, structuring deals, documentation, servicing, and selling notes. Now let's bring it all together and show you exactly how this works in practice.

In this module, I'm going to walk you through the entire process step by step from listing your property to getting paid at closing. You'll see how simple this really is when you follow the system. Let's walk through a deal.

Everything you've learned comes down to four simple steps. Step one, market your property with owner will finance. Step two, screen the buyer, negotiate terms, then verify their credit. Step three, let the title company or a creditor's rights attorney generate all the documents. Step four, close and get paid. Keep the down payment and either hold the note or sell it immediately.

That's it, four steps, simple, repeatable, and profitable. Now let me break down each step so you can see exactly how it works.

Step one, market with owner financing.

You have a property to sell. You list it online. Facebook Marketplace, Craigslist, LandWatch, wherever you normally list properties. But here's the key. Start your listing with owner will finance or seller financing available in all caps. Why all caps? Because buyers search for these exact phrases. They type owner will finance land or owner financing.

into Facebook or Google. You want your listing to show up in those searches. Don't put specific terms in your listing. Don't say 500 down, $200 per month. Why? Because you want the flexibility to adjust the down payment in terms based on each buyer's credit and situation. What happens next? Your phone starts ringing. Your inbox starts filling up.

you get 10 to 15 inquiries instead of one or two. That's the power of seller financing. You just open up your buyer pool by 10x. Now most of these inquiries might be tire kickers and that's fine. That's why we have a screening process.

Step two, screen, negotiate, and verify. When a buyer contacts you, start with two simple questions. Do you have a down payment? I'm looking for 20% down, but we can work with what you have. How's your credit? I'm not looking for perfect, but I need to know generally where you're at. These questions immediately filter out people who aren't serious or can't qualify.

If they say, have no money down and my credit is 450, politely let them know this probably won't work without a 50% down payment. But if they say, I have 15,000 down and my credit is decent, now you're in business. Next, you negotiate the terms. This is where you have the conversation about what they can afford monthly, what term length works for them, and what interest rate makes sense.

Remember from module five, be flexible. If they want a longer term, you can charge a higher interest rate. If they want a shorter term, you can offer a lower rate. You can adjust the down payment to affect the monthly payment. Work with them to find terms that make everyone happy. Once you've agreed on terms in principle, then you verify their credit.

Ask them to send you a screenshot from Credit Karma showing their credit score. This is free for them and gives you what you need. Or if you prefer, you can pull their credit yourself using a credit reporting service. This costs money, but gives you more detailed information. The key here is that you're verifying credit after you've negotiated terms. You're confirming they actually qualify for what you've agreed to.

If their credit comes back worse than they indicated, you renegotiate or walk away. If everything checks out, you move forward. Step three, generate the documents. Now you hand everything off to the title company or attorney. You provide them with the agreed terms, sale price, down payment amount, loan amount, interest rate, term length, and monthly payment.

You provide them with the buyer's information, name, contact info, entity if they're buying in a company or LLC. You provide them with the property information, legal description, parcel number, and address. Although likely all of that information will show up in the title search. And then the title company or attorney does everything else. They draft the promissory note with all the terms.

They draft the deed of trust or mortgage that secures the loan against the property. They conduct the title search to make sure there are no liens or issues. And they prepare all the closing documents. You review the documents to make sure the terms are correct. You make sure the six critical provisions we discussed in module eight are included. Once everything looks good, you schedule the closing. This is the easy part.

You're not doing the work, the title company is handling it. Step four, close and get paid. Closing day arrives. You and the buyer show up at the title company. Or in many cases, you do a mail away closing where documents are sent to you and the buyer separately. The buyer brings their down payment or wires it in. They sign all the documents. You sign all the documents.

and the deed transfers to the buyer with your lien recorded against the property. You walk away with the down payment check. That's all yours, 100% of it. Now you have two options. Option one is hold the note. Set up professional servicing and the buyer makes monthly payments to the servicer. You collect passive income for the next five to eight years. Option two, sell the note to me immediately.

Here's where working with me makes your life much easier. I don't just buy the note at closing. I handle all of the paperwork and interface with the title company to make sure everything closes smoothly. You focus on finding and marketing properties. I handle the closing process, coordinate all the documents, and wire funds to you immediately after closing. Either way, you're getting paid at closing.

Either you're getting the down payment plus the ongoing monthly income, or you're getting the down payment plus the lump sum from selling the note to me. This is how you turn seller financing into immediate cash. Now, let me give you a real example so you can see the numbers. You have a property worth $100,000. You list it with owner will finance in the headline. You get 15 inquiries over two weeks. You screen the buyers.

Most don't qualify, but one buyer has $20,000 for a down payment and a 690 credit score. Perfect. You negotiate terms. You agree on $20,000 down, financing $80,000 at 9% interest over seven years. Monthly payment is about $1,287 per month. You get their Credit Karma screenshot confirming their credit is 690.

everything checks out. You contact me to buy the note. I handle all the paperwork, coordinate with the title company, and make sure everything closes smoothly. You close 30 days later. At closing, you receive $20,000 from the buyer. I wire you $66,000 for the note at closing. Total cash in your account, $86,000. Compare that to selling for cash. A cash buyer would have wanted at least a 10% discount, so you would have gotten $90,000, but it would have taken you six months to find that cash buyer. Instead, you got $86,000 in two months. You can now take that capital and flip another property while the cash only investors are still waiting for their first deal to close. That's velocity of capital. Remember, this is a simple four-step process.

Mark it with owner will finance, screen, negotiate, then verify credit. Let the title company generate documents. Close and get paid. Everything you've learned in this course supports these four steps. Proper screening keeps defaults low. Right structure makes notes valuable. Professional documents protect you. Professional servicing prevents disputes.

Do it right once and you can repeat this process forever. In the next module, we'll talk about working together and how my note buying program can accelerate your land business. Let's keep going.