Seller Financing Questions

[Oron Subayi]

Hi guys

Still learning on real estate, and one of the strategies I saw yesterday was seller financing

I have few questions on it..I want to make sure that I understand the concept, and I hope you can help me : )

1. All articles\blogs etc are talking about getting a "loan from the seller". The load is not an actual loan right? as I understand it, the load is actually register the property on the buyer's name, am I right?

2. How to deal with additional payment like rehab, insurance etc in this strategy?

When going to a bank or other lender, you can ask for a load that includes the additional expenses, but it seems that it is not relevant in this case. Looks like I must have the money in my bank account, so the low paydown not relevant as well, because I must have money for the other expenses

3. Why is interest involved in this kind of strategy?

When a buyer is negotiating with a seller, they agree on a price for the property - let's say the price is X$.

Both sides agreed to X, so why can't the buyer pay X$ with seller financing, and no interest at all? It seems that the seller will be happy to get the X$ : )

Thanks all!