What Are The Benefits To The Seller When Doing Seller Financing

[Bryan Kohlstedt]

I think I understand the benefits to the buyer/investor when it comes to using seller financing on a deal. But, could you guys list the benefits on the seller's side to providing seller financing?

I also would like to hear some examples of how you were able to use seller financing in deals you have done, why you chose to do it that way, and what the seller's reasons were for agreeing to provide financing for the deal.

Thanks!

[Lynn McGeein]

If the seller would pay a huge tax burden, seller financing can reduce it by spreading it out over years instead of the one-time hit.  It also can provide income without too much risk as long as they've received a sizable down payment and properly filed lien on the property.  The buyer takes over all maintenance, repair issues but the seller can get the home back  if the seller doesn't pay.  In addition, it can be of great value with a hard-to-sell home, like on a busy street corner or backing to a shopping mall or something as it will attract buyers who may not qualify for traditional financing so they may be more willing to purchase at seller's price if seller finances.