Hey. This is J. Lucky Henry —
Keller Williams agent in the Greater Boston area. You won’t believe how many questions
I get on a daily basis. Everyday people need answers. Everyday people need explanations. That’s why everyday people need to get REAL! R-E-A-L: Real estate Explained Amazingly by Lucky in 90 seconds — give or take. What’s up!
It’s J. Lucky Henry. And this is the
last video about financing. No not the last video in the Real Estate Explained series…come on! I got like 100 more ready to go. But this video is the last one in financing and we’re talking about owner financing today. So we already covered VA, FHA, and
conventional types of loans. Now this one is owner financing. There are tons of way there’s tons of ways this can happen. And every rate is gonna be
negotiable between you and the seller. But this literally means– let me give you an example of what this literally means . This means I’m gonna purchase a property from the seller. Let’s call the seller Frank Smith. Right. So Frank Smith is selling a house
for $500,000 and I come to Mr. Frank and I say: Hey Mr. Smith right (I gotta be respectful I’m trying to get by his house now), Mr. Smith I would like to purchase your property and for whatever reason, I don’t wanna go to the bank, I’d like to pay you directly for this
property. Mr. Smith says: Awesome! $500,000 is what I need! Just pay on up in cash! How do you want to do this? And I say, “Whoa, Mr. Smith! I don’t actually have the cash for it.” He says, “Okay well how do you plan on buying my property?” I go, “I would like to pay you on a
monthly basis, right… until we get to $500,000 over the course of 20 years, 10 years, 15 years, right.” This is where it gets really emotional. You’re not stuck within the regulations of a conventional bank and how they want to
receive your money. You and Mr. Smith now have the room to negotiate to determine how you’re going to make this happen. Now where is this really common?
And where this actually beneficial for everyday practice? Let’s say you’re gonna purchase Mr. Smith’s house and it isn’t a single family. Mr. Smith has a two-family with a storefront, right. Now it becomes very beneficial. Or, even better, Mr. Smith has a one unit above a storefront. So it’s just me. I’m going
to live in this one unit and I’m going to rent out the storefront. Now if I can rent the storefront out for more than Mr. Smith needs me to pay him every
month… See how this is beneficial for me? I’m now making money to live there, right. But this is all things you gotta learn how to negotiate — you gotta figure out
can you rent that storefront out, who’s the best client to put in that storefront, is Mr. Smith gonna accept that offer? Is Mr. Smith gonna want to see your credit? Does he want to see your rental income? Different things that are gonna need to be negotiated, but this is owner financing. It happens. There are deals out there that you can do without a bank, right, and it get it done. However, I strongly recommend if you go this route, you get a good real estate attorney. Not a general practice attorney. A real estate attorney. There’s a link right here to a video I shot
with an attorney, who is a super super knowledgeable attorney about real estate. He’s been doing it for years. I think he started, to be honest, the year I was born. Don’t tell him I said that — he looks really good for his age.
(I know, for his age.) But check that video out!
Super good guy, super good friend of mine. And he can help you figure out how to construct a contract for something like that in owner financing if you’re interested in that. So this was a series about different types of financing. We got another series coming up tomorrow. Check it out! Everyday — Real Estate Explained. See ya! This is J. Lucky Henry and
I’m here to keep it REAL with you. Whether you’re looking to
buy, sell, or invest in real estate — call or text: 978 – 712 – 0244 and make sure you subscribe to my channel for more.