Why does seller financing not work anymore?

[Marcus Auerbach]

I get the question about seller financing quite a bit from new investors (I want to buy a deal 25% below FMV in Milwaukee and with seller financing... ahm, okay, let's talk about that). Found this chart and to me this pretty much explains why seller financing became so unattractive to both parties. Look at 1980! Why would a seller take the risk to work with a buyer a bank would not touch for such a small reward? And why would a buyer pay more if bank money is so cheap?

What are your thoughts? Have you done a seller financed deal?