Owner Private Financing

[Lydia Woods]

Hi,

This is question for myself. Looking into buying this 22 unit apartment complex. The seller is doing private financing. Why would a seller do private financing especially for such a large amount? What are usually the basic terms of it? Can you still sell the property while you under private financing? How to do due diligence on the seller? Will like to get different perspectives on it. Thank you

[Brooks Rembert]

@Lydia Woods, I'll answer one part of this... the owner probably wants to do seller financing because he/she will still get monthly income (from you).

For example, rather than receiving a lump sum payment and having to pay taxes on that full amount this year, they'll carry the note and have you pay them a monthly mortgage, therefore only paying taxes on the amount they receive from you each year.

So, they spread out the tax hit, and they keep getting a monthly income check.