Seller Financing - Mult-Family

[Michelle Simoni]

A lead wants 2.2 million for their 10 unit multifamily.

What would be an irresistible seller financing option to offer them?

[Jeff Pasmore]

Option 1: Lower Down, Higher Rate (10-15 Year Term)

For the Seller: Steady cash flow, better return than banks/CDs, avoids capital gains hit all at once.

For You (Buyer): Lower upfront cash, keeps more liquidity for operations, long-term financing stability.

Offer Price: $2.2M (Full Asking Price)

Down Payment: $220,000 (10%)

Loan Amount: $1,980,000

Interest Rate: 8% Fixed

Amortization: 25 Years

Term: 10-15 Years (Negotiable)

Monthly Payment: ~$14,846 (P&I on 25-year am.)

Why It Works for the Seller:

They get a consistent $14,846/month income instead of a lump sum that could trigger taxes.

8% return is way better than typical bank investments.

Avoids broker fees (~$100K savings).

No property management headaches—just collects checks. Or Option 2

Option 2: Aggressive Buyer Terms – 5 or 7-Year ARM, 25-Year Amortization
For the Seller: Larger down payment, shorter commitment, good passive return.

For You (Buyer): Lower interest rate, better cash flow, flexibility to refi or sell later.

Offer Price: $2M ($200K Discount)
Down Payment: $400,000 (20%)
Loan Amount: $1,600,000
Interest Rate: 6% Fixed for 5-7 Years (Adjusts After)
Amortization: 25 Years
Term: 5-7 Year ARM (Balloon at End)
Monthly Payment: ~$10,318 (P&I on 25-year am.)
Why It Works for the Seller:

They still get consistent passive income ($10,318/month).
They sell faster while locking in cash flow for 5-7 years.
If rates rise later, they can renegotiate or cash out.
Bigger down payment shows commitment and security.

I hope this helps