The same way you can get a used car cheaper by buying it directly from the owner instead of a dealership, is the same way you would buy a house using this strategy.

First you need to know how much you can spend on a house. The best thing you can do is pick a house that would have the type of mortgage payments that are lower than your current rent. This is where you have to do your homework. Not every house is going to be a viable option for you. And not every owner financing situation is opted into by standup owners. Beware of owners that want skyhigh monthly payments…they are setting you up for failure thinking they can foreclose on you and take their property back once you’ve gotten behind.

Secondly, make a list of the houses that fit your financial criteria that are also not being represented by a realtor. Realtor’s discourage this form of selling because they lose their cut. Make sure the owner owns the property free and clear. Don’t be discouraged, at least 30% of properties are owned free and clear.