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Owner Financing question/questions


NinnJinn
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I see where several people have gotten route sellers to do "seller financing"  And I have seen ads "seller will not finance."

On the other hand, I have seen reputable vendors here that put a cash payment down and write 4 or 5 post dated checks a month a part and give them to the seller in advance.

When you give a cash down payment and write 4 or 5 post dated checks a month a part and give them to the seller in advance, Is this still considered owner financing?

I guess what I am trying to ask is,  How to convince a cash only seller to sell the route without the full amount of cash in hand.  Possibly do 40-50% cash down and write 4 or 5 post dated checks a month a part?

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When you give a cash down payment and write 4 or 5 post dated checks a month a part and give them to the seller in advance, Is this still considered owner financing?

Yes.  Anything other than parting with the whole amount at the moment of the sale would be considered owner financing.

I guess what I am trying to ask is,  How to convince a cash only seller to sell the route without the full amount of cash in hand.  Possibly do 40-50% cash down and write 4 or 5 post dated checks a month a part?

Pay more.  Tell him you want to make it worth it to him to work with you.  Say something along the lines of 50% down, and "I'll work your route for you and pay you everything out of the machines, AND I'll pay you an additional 25% over and above that."

I'm not saying give away the farm, I'm saying to find out what is worth it to him to allow you to get creative with the financing.  It could be a circumstance that he's just simply not motivated, and he might tell you to go fly a kite.  It's a matter of motivation, really.

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Be careful with post-dated checks.  They can still be cashed immediately. 

As far as owner financing, regardless of what they say, many will still take financing, especially if you can make it sound like they are not really financing it.  Or if you offer much lower, then after you come up on price a couple of times, you say you can't go any higher without financing.

Regardless be careful with financing and avoid it if you can.

Another option is to buy in phases.  You make a written agreement to purchase the whole thing, but only a portion at a time. 

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