Seller Financing Help

[Hugh Harps]

Hello All,

I need your help. I want to engage in seller financing option with an owner, who owns his property out right. Obviously, with seller financing, the terms are much shorter. I am offering 7 years term before loan is payable in full with a 4K monthly payment and the loan amount is 580K less the down payment. The 4K would be covering the interests and principle. This is based on a 30 year amortization schedule because it would be insane for to be paying the actual loan amount in 7 years - that would put in a major cash flow problem. I hear that seller financing is a popular strategy to acquiring an asset without the conventional lending. What I want to know is: How do investor structures their seller financing? 

[Tyler Blackwell]

@Hugh Harps I have to agree with @Ned Carey, the structure and repayment options are pretty unlimited and depend on what you and the seller agree to. I've seen some sellers that will carry for a short time, 1-5 years, while the property is seasoned for refinance. I did a deal last year where the seller wanted steady retirement income, so we drafted a 25-year note, no balloon, no nonsense. Find out what the seller wants and see if it fits your business model.