I still don't get why Homeowners would sell via Seller-Financing

[Rohan J.]

Hey BP,

I've read a lot about the pros and cons about buying rentals through seller-financing, and I'm still unclear on why a seller would be interested in selling his property through this method. I'm trying to better understand this financing option more deeply right now in order to 1) figure out which type of homeowners I should target and 2) create the proper pitch that outlines the benefits of this financing, in order to make a less-experienced seller more comfortable with the proposition.

It looks like the main benefit of seller-financing is the fact that an owner would get payments spread out through 30 years instead of receiving one lump sum payment, but then my question would be: why wouldn't an owner just rent out their home instead? Wouldn't they accomplish their same goal of cash-flow by simply renting it out and holding onto it instead of selling it via seller-financing?

Would love to hear anyone's experience with seller-financing, and whether they would do it again. I'm afraid of being exploited in some way through this option, and obviously the last thing I would want is to get screwed in the end somehow and not actually receive the property.