Seller Financing Terms

[Nick Schultz]

Hi! I’m new to BP and real estate so I’m hoping to connect and learn from the community. My first question: What would you consider reasonable terms for seller financing? I’m sure it varies quite a bit based on the situation but I’m looking for general guidelines. I had a seller offer financing with the terms being 60% down, 8% repayment in 6 months. Any feedback greatly appreciated! I’m in the Raleigh NC area for reference. Thanks!

[Derek Harris]

Seller financing helps you avoid stringent underwriting criteria since it is not bound to agency requirements. The terms are completely negotiable. It is also good for deals that banks won't touch but that have a lot of potential. 

However, for this scenario, if there would be no issue with getting conventional financing and you have enough down payment, I would save my money and just get a conventional loan.