Sub2 Investor

This week, I worked with Hans Moscicke. He taught me all of the different types of real estate. I learned about whole sailing, flipping, agent, commercial, and renting, but all of them have a downside, except for what he does: seller financing. Seller financing is a real estate arrangement where the seller acts as the lender and provides financing to the buyer for purchasing the property. Instead of the buyer obtaining a traditional mortgage from a bank, they make payments directly to the seller over an agreed-upon period.

Many people can’t meet the requirements for a bank loan even if they make enough income, for example, if they are self-employed. People who do seller financing buy houses that are low-interest, for example, 3%. Someone who does not meet a loan requirement will then purchase the house from them, and they charge them, for example, 6% interest. So the seller financer will be paying the bank 3% and keeping the other 3% monthly.

As I said before, all other forms of real estate have a downside except for seller financing because you do not have to manage any properties. You are solely acting as the bank and getting paid monthly. If something breaks on the house, it is not your responsibility to fix and pay for it, as a renter would need to.

Right now, Hans is trying to add properties from Texas to his portfolio. He gave me a spreadsheet with the address and seller names of different houses that may be possible leads, and I needed to look up the houses on Zillow.com and find the days on the market, the first and last name of the agent, their phone number, and the status of the house, for example, Off Market, Under Contract, Pending, or Active. An issue that we ran into was that the phone numbers on Zillow were sometimes the office phone numbers, so I had to go back and look up all of the agents on Google and find their mobile numbers. In the past two days, I went through 275.