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Investing in Real Estate Using a Seller Second

This is a hybrid of the Owner Financing strategy. It’s extremely useful and used often. The "Seller Second" means that the seller provides a second mortgage. Typically, the second will be just large enough to cover most, or all, of a required down payment. For instance, if you know you're pre-qualified for a loan that will require a 20% down payment, you should make an offer contingent on the seller carrying a note for 20%. This way, you will get into the property without using any of your money and the seller gets the bulk of his equity and makes the deal. One caveat: Make sure the loan you are qualified for will allow a second mortgage to be attached to it.

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