Bank on Your Neighbor: The Audiobook - Chapter 13

The deal doesn’t end with a handshake—it lives in the contract. In this chapter, Mel Dorman takes you inside the fine print of seller-financing agreements and shows how to turn confusing legalese into a roadmap for win-win deals. You’ll learn why attorneys are essential (and how to find the right one), the must-have clauses that protect both buyer and seller, and how to avoid the pitfalls that can tank a deal.

With real-world examples, plain-language breakdowns, and Mel’s signature mix of strategy and heart, this episode empowers you to move from “just talking” to signing a solid, ethical, and enforceable agreement.

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Transcript

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Hi, friend. I'm Mel Doman, real estate investor, former social worker, TEDx speaker and financial activist. And this, this is Bank On Your Neighbor, the podcast. You're probably here because you felt it too, that the system wasn't built for us. That building wealth shouldn't mean selling your soul to Wall Street or crossing your fingers every time a bank says no. That there has to be another way. Well, there is, and this podcast is my free gift to you. That's right. Free, no paywall, no audible subscription, no gatekeepers standing between you and the knowledge that can change your life. Because here's the truth, just because something's free doesn't mean it isn't valuable. Sometimes the most valuable things, clarity, empowerment, freedom, don't come with a price tag. They come with purpose. I created this podcast because I'm on a mission to decentralize wealth, to take power out of the hands of billionaires and put it back into our communities. Each episode is a chapter from my book Bank on Your Neighbor. Read by me. It's my way of making sure this knowledge reaches the people who need it most without a single algorithm getting in the way. We'll walk through the real strategies I use to go from dumpster diving in my twenties to building a multimillion dollar portfolio in my thirties without banks, without credit, and without compromising my values. We'll talk seller financing, community centered investing. And creative ways to build wealth that actually serve people, not exploit them. But this isn't just a podcast, it's a movement, a radical reclaiming of power, a blueprint for creating more community-minded millionaires and fewer billionaires extracting from our neighborhoods. Every chapter builds on the last, so I recommend listening in order. I'll drop links, visuals, and extra resources in the show notes to help you take action. Not just absorb information, and if something in an episode strikes a chord, send it to someone you care about. That's how we spread financial literacy. That's how we grow a movement. That's how we rise together. Welcome to Bank on Your Neighbor. Welcome to the movement. Let's build something together. Chapter 13, drafting your offer. The limits of my language mean the limits of my world. Ludvig Stein. Imagine you're scrolling through dating profiles and one catches your eye. Their bio reads, world traveler, Michelin star chef fluent in three languages. The photos perfect lighting, perfect staging. You swipe right, intrigued. But when you meet, they admit they've only been to Cancun once. Their Michelin star chef status was really just loving frozen pizza and the three languages. It's Google Translate. Now compare that to another profile. No staged glamor shots. No overblown claims. They're bio simple, loves cooking, hiking, and bad karaoke. You meet them and sure enough, they're making tacos from scratch. Planning your next weekend, hike and belting out. Don't stop believing in a way that's both terrible and adorable. The difference, the first person is selling perceived value. They sound amazing, but it's all for show. The second actual value, they're the real deal, even if they don't come with fireworks. When it comes to seller financing, the principle is the same. You're entering a relationship, one that requires trust and mutual benefit. If you focus on looking good for the short term without delivering on your promises, it'll fall apart faster than a bad first date. When you bring real value to the table, when you understand the seller's needs and balance them with your own, you build something worth keeping, a deal that lasts, a reputation that earns trust, because whether it's dating or real estate, fireworks fade fast, but trust, that's what builds a future future. Speaking the language. When I was living in Uganda and India, I had to learn the local language fast. Why? Because there's no better motivation than avoiding a personal puddle disaster. Let's just say if you confuse the word for bathroom with the word for bucket, your day gets real interesting. The same is true in real estate, minus the soggy pants. Contracts are where the magic happens. They turn conversations into commitments. But to use them well, you need to speak the language. If you don't, you'll be nodding along to terms you don't fully understand, and that's how bad deals happen. So think of this chapter as your crash course in real estate fluency. Dry pants and financial freedom await, let's get into it. Contingencies your escape patches. Contingencies are the, if this, then that clauses baked into your contract to give you an off ramp if something goes sideways. Think of them like emergency exits in a building. They're not glamorous, but you'll be glad they're there when the fire alarm goes off. Too many first investors skip learning this part, either because they don't wanna get overwhelmed by the details or because no one ever taught them how powerful these clauses really are. I once forgot to extend my inspection contingency and discovered a $12,000 plumbing issue, two days too late. That mistake taught me something fast. A contract isn't just a piece of paper, it's your safety net. If it's full of holes, you fall. Here are the three most common contingencies you'll want to use strategically. Inspection contingency. This clause gives you a set amount of time, usually 10 business days, to thoroughly inspect the property for hidden problems. Think cracked foundations, outdated electrical panels, or a roof that should have retired five years ago. If you uncover something big, you have the right to renegotiate the price. Ask the seller to make repairs or walk away entirely and get your earnest money back. But beware, once this deadline passes, you lose the legal right to back out over condition. You're effectively saying, I accept this property as is. That's why staying on top of your inspection timeline is just as important as the inspection itself. Appraisal contingency. Used mostly in bank finance transactions. This protects you if the appraised value of the home comes in lower than what you agreed to pay. If the appraisal says the home is only worth 350,000 and you agreed to buy it for 375,000, the bank may only lend based on the lower number leaving you on the hook for the $25,000 difference. This clause gives you options, renegotiate the purchase price to match the appraised value. Cover the difference in cash if you still want the deal. Or cancel a contract and walk away with your earnest money. Even in seller finance deals, a buyer side appraisal can give you negotiating leverage and clarity. You're not just protecting your wallet, you're protecting your equity on day one, financing contingency. This one's your parachute in case your funding falls through whether you're getting a traditional loan or creatively structuring seller finance deal. Life happens. Jobs change, credit scores drop. Lenders get cold feet. A financing contingency says, if I can't get the funds to close, I'm not penalized for walking away. It ensures you don't lose your earnest money over something beyond your control without this clause. You're essentially saying that you'll buy the property no matter what. Even if the bank ghosts you or your loan approval evaporates overnight. And trust me, it happens more often than you think. Pro tip, always track your contingency deadlines like your financial life depends on it because it just might. Put reminders in your phone, email your realtor or attorney ahead of each deadline, and don't let even one date slip past a missed contingency deadline can cost you more than money. It can lock you into a deal you regret. Closing costs the sneaky extras. Closing costs are the cluster of fees that sneak up at the finish line. They include things like title insurance, escrow fees, recording fees, transfer taxes, prepaid insurance, prorated property taxes, underwriting fees, and sometimes even a mystery line item or two that'll make your eyes roll. These costs often total up one to 5% of the purchase price, which can add up fast, especially if you're buying on a tight budget. Pro tip. If you're short on cash, ask the seller for a closing cost credit. It's a common above board tactic where the seller agrees to cover some or all of your closing costs. Usually in exchange for a slightly higher purchase price. Example, you offer $300,000 with 5,000 in closing Cost credit effectively netting the seller $295,000, but saving yourself from draining your bank account, it's a smart way to win a deal without getting wiped out at closing escrow and title services, the refs and detectives. Think of escrow as a neutral referee of the deal. They hold your earnest money, manage the paperwork, and follow the instructions laid out in the purchase agreement. No more, no less. Escrow doesn't take sides. They don't advocate for you or for the seller. Their job is to carry out the playbook both parties agreed to. So if the contract says close on July 15th, once all conditions are met, that's exactly what they'll do. No faster, no slower. In a seller finance deal, escrow ensures the down payment is transferred correctly. The promissory note or mortgage and deed of trust are signed and recorded, and the funds are released only when both parties have fulfilled their promises. It's not glamorous, but it's absolutely essential. A clean escrow process is what takes your deal from risky handshake to legally binding, fully protected agreement. Title services. Title companies are the private investigators of your deal. Their job is to verify that the seller actually owns the property and has the legal right to sell it. They search for unpaid property taxes, existing mortgages or liens, pending lawsuits, hidden errors or unresolved ownership disputes, easements or conditions for the use placed on the property. Their final product is called a title report, which summarizes the history and current status of the property's ownership. Read it carefully and ask questions if you don't know what something means. Title insurance. Even with a thorough title search, things can fall through the cracks, like an unrecorded easement or a long lost error. Showing up three years later to claim the house title insurance protects you and your lender if applicable from these surprises, it's a one-time fee, a closing and worth. Every penny Pro tip, always get title insurance, even on seller financed off market inherited properties, especially on those. Earnest money, your engagement ring. Earnest money is a deposit you make to show the seller you're serious about buying their property. Think of it like an engagement ring. It's not the whole commitment, but it's signals intent. You're not just browsing anymore, you are in. Typically ranging from one to 3% of the purchase price. This money goes into escrow after the offer is accepted. It shows the seller that you're not wasting their time and gives them some security in case you back out for a flaky reason. But be warned, if you walk away from the deal without a valid contingency, like a financing or inspection clause, you are essentially ghosting after the proposal and the seller gets to keep the ring. That's why contingencies matter. They're not about being non-committal. They're about protecting yourself in case the foundation of the relationship isn't what it seemed. Possession who gets the keys and when. Just because the deal closes on paper doesn't mean the seller is gone, or you can start swinging a sledgehammer. Possession is the moment you officially take physical control of the property, and it doesn't always line up with the closing date. Sometimes sellers need a little more time to move out after closing. That's called a rent back agreement. A short term arrangement where the seller becomes your temporary tenant, usually paying daily rate until they vacate. If this is the case, get it in writing. Include clear terms when they're leaving, how much they're paying, and what happens if they don't leave on time. On the flip side, sometimes buyers want to start renovating before the deal officially closes. This might seem like a time saver, but legally it's a minefield warning. Renovating a home you don't officially own yet can expose you to serious liability, especially if the deal falls through or someone gets injured. If you're tempted to go this route, talk to an attorney first. You'll likely need a separate access agreement with very specific insurance provisions. Bottom line, always clarify who gets the keys and when Spell it out in the contract. Don't assume possession is at closing. The smoothest deals happen when expectations are documented, not just assumed. Beyond the basics. Do you remember the day your training meals came off? You were wobbly, unsure, maybe even scared, but once you caught your balance, something shifted. You felt the wind, you felt the freedom, and for the first time you thought, I'm really doing this. That's where you are now. You've learned the basics. Contingencies, escrow, earnest money. You understand how to ride. Now it's time to learn how to steer, accelerate, and glide through creative deals with confidence. In this section, we're moving beyond boilerplate offers and into high leverage deal making. These aren't just technical terms. They're invitations to design a win-win offer that works for both you and the seller. But here's your pre-game warmup. Don't wait until you're face-to-face with a seller to learn these practice explaining them to a friend first. Even if they just nod and smile, because when the opportunity shows up, preparation is the difference between hesitation and a handshake. Let's start with the three core building blocks of every seller financed offer, promissory note deed of trust and balloon payment promissory note. A promissory note is the document that outlines the terms of your promise to pay the seller over time. It's your IOU in legal form and it spells out all the critical details. Loan amount, interest rate, amortized or interest only. Monthly payment loan maturity, date balloon payment if applicable, any special clauses you've negotiated. Think of it as the conversation made concrete. It's not a vague agreement or a verbal. Cool. Let's do it. It's binding. It gets signed. It's enforceable in court deed of trust. If the promissory note is the IOU, the deed of trust is the security behind it. This document connects your promise to pay with an actual property you're buying. It gets recorded publicly and gives the seller a legal right to reclaim the property through foreclosure. If you stop making payments in a seller finance deal, the seller essentially becomes the bank. The deed of trust protects their interest by tying your debt to a real asset. Your new property, there are three parties involved. One, the truster, that's you the buyer. Two, the beneficiary, the seller, or the lender. Three, the trustee. This is a neutral third party, usually a title company or an attorney. Once you've fully paid off the loan, the trustee releases the deed and the seller's interest is removed from public record. Pro tip always confirmed the deed of trust gets recorded with the county. If it's not recorded, the seller's lien may not be enforceable and the whole structure can fall apart. Balloon payments. A balloon payment is a large lump sum due at the end of a loan term, often five, seven or 10 years down the line. Unlike a fully amortized loan where your payments gradually pay off both principal and interest over time, a balloon loan often features interest only payments during the loan term, and a big payoff of the remaining principle at the end. That might sound scary, but here's the truth. Most investors never pay the balloon in cash. Instead, you can refinance the loan with a bank or another seller. You can sell the property and pay off the note from the proceeds, or you can renegotiate the terms with the original seller, especially if you've built trust. Balloon clauses are common in seller financing because they provide flexibility for the buyer and a sense of timeline for the seller. Pro tip, if you're proposing a balloon, make sure to time it with an exit strategy. Will rents increase enough by then to qualify for a bank loan? Do you have value add plans that will raise the appraised value? Are you building a portfolio of lenders who might step in? Never treat a balloon payment as the end of the road? Treat it as a pivot point. Just make sure the bridge is built before you reach it. Remainder beneficiary. Talking about death might feel awkward, but for many sellers, especially older ones, it's not just practical, it's personal. They're not just thinking about this deal. They're thinking about what happens after. Where does the money go? Who gets the income stream? Will it help or harm the next generation? That's where a remainder beneficiary clause comes in. It allows the seller to designate someone, a spouse, child, grandchild, charity, or foundation to continue receiving the payments if they pass away before the loan is fully repaid. This way the income doesn't just disappear or get frozen in probate court. It flows directly to the person or cause they care about. Why this matters Many sellers fear leaving behind a lump sum, their heirs aren't ready for some worry about kids who never had to build wealth. Mismanaging what's passed down this clause offers a solution instead of a windfall. It creates a structured income stream. It brings peace of mind. Knowing the deal they said yes to will keep providing long after they're gone. And it protects the buyer too. Eliminating confusion or legal roadblocks if the seller dies unexpectedly. Pro tip, if the seller doesn't name a remainder beneficiary in the promissory note, their heirs may have to fight it out in probate court, which creates an unnecessary tension. Make it easy. Include this clause. It's good stewardship on both sides. First, right of refusal. Imagine this your sipping coffee and a mountain cabin, or maybe snowboarding down the slopes in Lake Tahoe. And your phone buzzes. It's Brian, the seller who financed your fourplex. He text. Would you like to buy your note back? I need cash for another project. This is your moment. If you included a first right of refusal clause, you have the exclusive option to purchase the note before he sells it to someone else, often at a discount. In my case, I owed Brian $188,000 over the next 10 years, but when he wanted out early, I offered him a hundred thousand dollars cash to buy back my own debt. We settled at 110,000. That one text gave me $78,000 in equity and reduced my monthly payment by $78, all because I simply replaced Brian with another lender at better terms, even better. The new lender was a seller I'd worked with before. I texted him the same day. He was thrilled to step in why it matters. Without that clause, Brian could have sold the note to anyone, an investor, a debt buyer, even someone hostile. With it. I had the legal right to step in first and buy the note at a steep discount. Money. I'll get back when I sell. Pro Tip, include this clause on every seller finance deal. It gives you long-term control and opens the door for creative wealth plays down the road, like replacing the note with one at a better rate or gaining equity by purchasing at a discount delay of payments. When I bought my first seller financed property, I had the ambition, but not the cash flow. Two units sat vacant and I knew I couldn't make payments until I got tenants in the door. So I asked for what I needed, a delay of payments clause. I proposed to the sellers, let's delay the first payment by two months. I'll still owe you those payments. We'll just tack them onto the back of the loan and include interest. That way you don't lose anything and I get time to stabilize the building. They said yes. By the time my first payment was due, the units were rented and the property was cash flowing. That deal didn't just work. It had room to breathe. This is the magic of a delay of payments clause. It creates space. Space for you to finish renovations, stabilize vacancies, recoup upfront costs. Catch your breath before starting monthly obligations. And space for the seller to feel protected. They're earning interest on deferred payments. Experience your honesty and transparency and build trust with you from day one. Pro tip. Don't frame this as a discount. It's not. The seller still earns their interest often more. Since those delayed payments accrue interest, frame it as a strategy for long-term success for both sides. Timing the close date. The right closing date isn't just a detail, it's a lever. You can walk away from the closing table with more money in your pocket than you brought simply by choosing the right day. Here's how, let's say the property brings in $20,000 in monthly rent. If you close on the second of the month after the seller has already collected rent from tenants, you are entitled to a prorated portion of that income. If your closing costs and down payment total less than your prorated rent credit, you walk away with cash at closing. That's right. Your first investment deal can actually leave you richer on day one, and it's not just about rent. Here's another real world example. I once bought a duplex with a large lot that had potential to be split into two parcels worth $200,000 more the catch. I needed time to get city approval, so I negotiated a nine month closing period. The seller stayed in the home happy and rent-free, and I got time to confirm the lot split before fully committing. That time saved me tens of thousands in holding costs and protected me from taking on risk. I couldn't justify. Pro tip use closing dates to solve problems. Need time for permits waiting on funding. Want to offset costs with prorated rent. Strategically, timing the close can create real financial wins without changing the price or terms. It's one of the simplest ways to negotiate like a pro buy down the rate. Interest rates. Got you sweating. Don't worry, there's a workaround. It's called a rate buydown, and it's one of the most overlooked tools in creative finance. A buydown is exactly what it sounds like. You pay more upfront to reduce your interest rate and in turn, lower your monthly payment. It's like prepaying for peace of mind and better cash flow. Let me show you how this plays out in real life. I once purchased a triplex and negotiated a $30,000 buydown to reduce the seller financed interest rate from 6.5% to 5.5%. That one move boosted my annual cash flow by $6,600 a year. Let's run the math.$6,600 divided by 30,000 equals a 22% return on that buydown. That's right, a 22% return for one time expense. Unlike market returns, this one's baked in. No volatility, no waiting. This strategy isn't just clever. It's game changing, especially if you're planning to hold the property long term or if you're buying in a high interest rate environment, or you want to compete with cash buyers without reducing your offer price. It also creates a win for the seller by slightly increasing the sales price to cover your rate. Buydown. You get a lower monthly payment without the seller needing to reduce the price drastically for the same result, it costs them less and benefits you more. Win win Pro Tips, run the numbers. Ask yourself, if I pay X more upfront, how much do I save per month? Think long term. The longer you hold the property, the more value you extract from the lower rate. Avoid this on short flips. If you're selling in six months, that$30,000 isn't likely to come back to you. The big idea, cashflow isn't just about income, it's about terms, and when you learn how to shape those terms, you stop hoping for good deals and you start designing them. Underwriting the deal. Three laws of real estate acquisition. There are three laws in real estate unseen, but unyielding. You don't get to opt out. You can ignore them for a while, but eventually you feel the fall. I've never seen an investor lose money on a property that honored these laws, but I've seen the sleepless nights, the regretful spreadsheets, the whisper of I knew better when someone didn't. This section is your invitation to know better and act accordingly. There are only two kinds of real estate you'll ever buy, properties you plan to hold and properties you plan to sell. Each one has its own metrics and motivations, but both are ruled by the same compass. Location, terms and expandability. These aren't preferences. These are laws break anyone, and you risk the whole deal. Honor them and they will carry you through downturns, uncertainty, and change One. Location, location, location, location. You've heard it before, but let's go deeper. This isn't about buying into hype or chasing speculation. It's about investing in places people already want to be. Not someday, but now I call them romantic locations. Not because they're luxurious, but because they evoke feeling tree-lined streets, local coffee shops, sidewalks that whisper you belong here. Look within 10 miles of major employment centers, but even inside good cities. Be discerning. Avoid properties on major roads. Next to industrial blight. Near known environmental hazards. One block can make a world of difference. Walk the street. Listen, feel the neighborhood. You're not just buying a building. You are committing to a place. Make sure it's one worth loving. Two terms. If location is the ground you build on, terms are the structure that supports it. In real estate, it's not the price that determines whether you thrive. It's the monthly payment. That number is your breathing room. It's what allows you to survive the slow months and still move forward with confidence. This is why seller financing is so powerful. You get to design the terms. When you author the terms, you change the deal without changing the property. Let me show you. Which loan would you rather take?$2 million at 6% interest only, or $1 million at 12% interest only surprise. The monthly payment is the same. Let's go deeper. Suppose your property brings in$3,000 a month of rental income. And you pay $500 in taxes and insurance. Utilities are $200. Property management, another $240 and repairs and maintenance is $300. That means your net operating income is $1,760. Now, let's say you want to earn at least $250 per month in cash flow.$1,760 minus $250 equals $1,510, which is your target max payment, anything above it, and your cashflow disappears. Now look at how different terms can get you there.$350,000 at 5% equals $1,458 per month.$380,000 at four and a half percent interest. Equals $1,425 per month, $425,000 at 4% equals $1,416 per month. See what's happening? The purchase price can rise if the terms improve and your payment still fits. Terms are what? Unlock sustainable cash flow. Sometimes paying more for the property when paired with the right terms, actually lowers your monthly obligation. And if the term is long, say 20 years, the difference between 450,000 and 400,000 today won't mean much to you then. This is why being fluent in creative financing isn't a bonus skill. It's essential. Structure your terms around what serves you. Then give the seller options. Ask, if I paid you 120,000 at 4%, would that work better for you than say, a hundred thousand at 6%? And if they say yes, you just made money. You see 120,000 at 4% equals $400 a month, but a hundred thousand dollars is 6% is $500 per month. That one difference just made you a hundred dollars a month in additional cashflow, all because you came prepared to ask the right questions. You knew what you wanted. Three expandability the third law often overlooked is your greatest hedge against risk. Expandability. Expandability means the potential to create additional value for the end buyer or renter. It's what separates an investor from a consumer. When you buy a fully upgraded property at full market value, you are paying for someone else's vision. The upside belongs to them. But when you buy a property with room to grow through physical upgrades, zoning opportunities, or financial improvements, you create equity. You build leverage, you give yourself options. Expandability shows up in three forms, one physical improvements. Can you make the building itself more valuable? Maybe by finishing a basement, adding a mother-in-law unit, or renovating a kitchen or bathroom, but always study the comps first. Not every upgrade is valued equally by the market. Two, land use potential. Does the zoning allow for a better use of the property? Can you divide the lot? Build another structure? Increase the density. Zoning is often more powerful than square footage. Use it wisely. Three financial optimization. Can you increase income or reduce expenses in creative ethical ways? Add coin laundry, raise rents to market rate, shift to midterm or furnished rentals, or install paid storage. But remember, if you raise rent, raise value to improve the tenant's experience. The best equity is earned, not extracted. Why this matters. When markets tighten, expandability gives you options. It's your plan B, your pivot point, your hedge. Without expandability, you are buying someone else's finished product. With it, you are building your own upside before you move forward on any deal, hold or flip. Run it through this filter. Is it in a strong, desirable location? Can I negotiate terms that support long-term cash flow? Does it offer expandability, physical, financial, or strategic? If the answer is yes to all three, proceed with confidence. If not, walk away. Not every opportunity is yours to carry. Flipping when liquidity is the goal. Not every deal is meant to be held. Some are meant to be flipped, not for legacy, but for liquidity. Flipping is a different game. If you're not building long-term wealth, here you are building short-term cash to fund the next move, and that shift changes everything. Your priorities, your risk tolerance, and your margin for error. When you're flipping, the three laws still apply, but in a different order of priority. The first one is expandability, it leads second location protects resale value, and third, the terms they matter. Only if you plan to finance the acquisition. Here's what makes a good flip candidate. One, it's in the bottom third of neighborhood values you're buying under the median, not over it. Two, it appeals to the broadest pool of buyers, first time homeowners, downsizers, or even investors. Three, it has cosmetic problems with obvious solutions, not mystery, mold, or foundation nightmares. The math for underwriting. A flip is simple and principle, but hard to execute on, which is why flipping is risky. Here's how you want to calculate. Take your acquisition price and then add your closing costs, plus 30% of the acquisition price, which is going to be your profit margin. Then add in your rehab costs, plus your seller costs, which are the commissions, taxes, staging, et cetera. Then add your holding costs, which are your financing fees, interest, taxes, insurance, and utilities. All of this equals your target sale price, and it needs to be within 90 days of purchase. That 30% profit margin isn't greed, it's protection. Once taxes and surprises are factored in, that margin shrinks fast. If you cut this too thin, you're flipping for practice, not profit, and if you aren't careful with your numbers. You might just end up paying for an expensive education in the process. Remember, speed is essential. The longer you hold, the more exposed you are to market shifts, labor delays and interest rate hikes, minor cosmetic flips tend to outperform dramatic overhauls. Stick to paint fixtures and curb appeal. Save the full gut jobs for someone else's learning curve, and none of this is guesswork. Never go in blind. Before you swing a hammer or sign a contract, gather real data. Study six months of sold comps, walk active listings, get multiple contractor bids, line up your financing or seller financing terms. Run a worst case scenario, and then ask yourself, if I had to rent this, would it cashflow? If the answer is no, think twice. If everything has to go perfectly for the deal to work, it's not a deal. It's a gamble. Flipping can be a tool, but it's not the goal. It's the part-time gig that funds your full-time vision. The spark that fuels the fire, not the fire itself. So flip with discipline, flip with backup plans, flip only when the numbers work and the timing aligns. Because in this game, fast money is never fast. It's just risk. Well managed building your team. Once you've built rapport with the seller, run the numbers and crafted a strong offer, it's time to bring in the pros, but not just any professional will do. Even though seller financing is clearly supported by most standard real estate contracts, most agents have never actually done a seller finance deal. And many of them don't even know what they don't know. That's a risk you can't afford. Maybe you're thinking, do I really need a realtor or attorney if I already understand the deal? Let me put it this way. Would you represent yourself in court? Would you perform your own root canal? Would you open your own chest in an operating room? Hopefully not. Real estate, especially creative finance, is highly technical, legally dense, and full of landmines. The right professional won't just walk paperwork through. They'll protect your downside, speed up your timeline, and keep small mistakes from becoming big, expensive ones. And while trust in the real estate profession isn't always high, a 2018 Gallup Poll ranked realtors just under bankers and perceived honesty, ouch. The right real estate professional is worth their weight in gold. Top producing realtors often earn more than surgeons, not because the job is simple, but because it's high stakes and deeply nuanced. A qualified professional can recommend an inspector who actually finds things spot risky, contract language, flag potential lawsuits before they happen. Connect you with reliable lenders, title companies, or contractors. Advise you on market trends that can shift your offer strategy in real time. As the saying goes, don't step over dollars to go after dimes. A few hundred or even thousand dollars spent on a qualified real estate professional is money well spent. The alternative can be much more expensive. Pro tip, agent fees are always negotiable. If paying full commission feels out of reach, consider offering a realtor financed commission. A promissory note to the agent secured by a second position lien. Here's an example. Instead of paying $15,000 in cash, you offer a $15,000 note to your agent payable. Over time, creative finance wins again. Now finding the right agent means asking the right questions. Interview two to three professionals Compare. Be discerning. Here's what to ask. How many seller finance transactions have you completed? Can I read reviews from past investor clients? Do you own investment property yourself? What's your typical client base? Homeowners or investors? Do you personally work with clients or will I be handed off to a team member? Who would you recommend if you weren't available? The last question is key. The best professionals won't fake expertise. They'll refer you to someone better and still earn a referral fee. In fact, our industry is structured to reward referrals, usually 25% of the commission, which means great agents have a strong incentive to match you with the best. Take the time to search out these professional unicorns when it comes to drafting the promissory note. Think seller financed mortgage paperwork. I recommend finding a qualified real estate attorney. You can use many of the same questions to vet them as well. My Oregon based attorney, Sean Morgan, isn't just a lawyer. He's also a real estate investor, a landlord, a creative finance specialist, an LLC structuring wizard, and the owner of a property management company. That's rare, but here's the point. You don't need 10 experts. You need one unicorn who sees the full picture. Someone who protects your risks, supports your strategy, and speaks the language of long-term wealth. The truth is every great deal involves more than just numbers. It involves relationships. Starting with the one you build with your team. Choose. Well, ask better questions. Don't just look for service. Look for alignment, because in seller financing, your offer isn't just what's on paper. It's the professionalism, preparedness, and support you bring to the table. Okay, you made it. You learned how to structure an offer that isn't just legal, it's relational. You've gone from swiping right on properties to actually crafting win-win terms with clarity, creativity, and care. Because in real estate, just like in dating, what lasts isn't flash, it's follow through. And when you show up with real value, thoughtful terms, clear protections, and a team that has your back, people say yes. Now, here's the part. Most investors don't realize this one deal. It's not the finish line, it's the starting gate. In the next chapter, we'll explore how your first seller finance purchase can become a stepping stone. One that not only grows your portfolio, but opens doors for others along the way. Because this isn't just about building wealth, it's about building momentum and taking others with you as you rise. Let's keep going.