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Sick of Being a Landlord? Double Your Rent with Seller Financing

landlord to lender

Tired of tenants? Sick of being a landlord? Landlords can often DOUBLE what they are netting in rent by being willing to become the lender through seller financing. Invest in notes, instead, by carrying paper on property you already own.

In many cases, landlords can do less and GET MORE by offering owner financing…. becoming the bank on properties they already own. Check out a concrete example in my latest Property & Paper Live. (To sign up to participate in future live sessions, register @

The job of a house (or other investment property) is to pay for itself. If you are managing a rental house wisely so it pays for itself and never asks you to take money out of your own pocket for surprise repairs (like a roof or sewer main), you are setting aside 35% of gross rents and keeping it in a reserve account.

Out of that reserve account, you cover property taxes, insurance, maintenance and repairs.

So if you are collecting $2,000 in gross rents, you should be keeping 35% ($700) in a reserve account, separate from your regular personal checking account.

That leaves you with $1,300 with which to cover debt service (any bank loan/mortgage) and you live on the rest, but usually older landlords own their properties free and clear, which is a great place to be! But what if you just want out of being a landlord all together?

Here’s what being the bank (the lender) might look like:

Let’s say your rental is worth $450,000, and you’re willing to sell it to someone who is looking for a home for their family.

  • $450,000 sales price
  • $45,000 cash down payment from buyer
  • $405,000 loan amount
  • 6.5% interest
  • 360 (30 year fully amortized)
  • $2,560 monthly P&I (principal & interest) monthly pmt

So… instead of netting $1,300 and having to manage tenants and properties, you net $2,560 (just shy of double)… and there’s nothing you have to do. You can turn real assets into paper assets (a note), and if you ever need or want more cash than the buyers put down, you can easily sell a ‘front-end partial to get the cash you need.

So if you’re sick of being a landlord double your rent with seller financing, AKA owner financing, seller terms, carrying paper, seller carry back, etc.

You can trade 3, 5, or 7 years’ worth of payments for a nice lump sum right now, and you will only give up a fraction of the principal balance of the note, making the discount very small.

If you are curious, these resources will really help you along:

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