Buying a lot that offers seller financing

Buying a lot that offers seller financing

Member since 2022 · 4 posts · 1 vote

Hi BP-

I am interested in buying a lot to build a rental property on. The seller is doing a 1031 exchange with this sale, but the listing also discloses that they are interested in seller financing. I am not super familiar with the benefits (to the buyer) of seller financing. I am working with a bank to secure funds on this purchase, but should I also consider doing seller financing?

Thanks

Devon

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    4y

    @Devon Newhouse ask the seller what their financing terms are.  Then compare those terms to your current lender terms.  If the seller is offering better terms than your lender, then that's the benefit to you.  Does that make sense?

  • Member since 2022 · 4 posts · 1 vote
    4y

    Thanks for the response.Yeah, that seems pretty simple. Thanks!

    @Andrew Postell

  • Rental Property Investor · Portland, OR · Member since 2009 · 82 posts · 30 votes
    3y

    If the seller wants to place a lien on the property to insure your payment, the banks may not finance a construction loan on a property with a lien.

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