seller financing offer

[DJ Cummins]

So the people we bought our first property from last month own 5 other properties. They hinted to us at closing that they would be interested in possibly doing a seller financing deal on at least one more property. I have read some about seller financing but i dont really know how it works.
Say we were to take a two year seller financing option...that means in two years we would have to come up with money from a bank loan to refinance and pay off the balance with the sellers. Do we need to have 20% down to refinance a seller financing deal? I dont even know what other questions i have. Any advice would be appreciated.

thank you!

[Brian Gibbons]

@DJ Cummins

Without knowing the details, it is hard to advise here.

It does not need to be 2 years.

Investor to Investor there is no Dodd Frank (you are not Owner Occupant, you are not renting)

It is important to buy equity not just cash flow.

It is important to get a relationship with a portfolio lender that lends on 80% of appraisal and not 80% of purchase price.

Just because you can buy Owner Finance, does not mean you should over pay.

@Bill Gulley