Seller Financed Buy & Hold

[Saim Chaudhry]

Hey BP,

I am playing around with an idea in my head today. A seller financed Buy & Hold. Is this a common thing? I am new to REI and playing with this idea, as my credit is not so great (got a little crazy when I turned 18), but it is on the rise back up and I am much more responsible after my crazy years of maxing out cards.

What are the terms usually like? Are they all usually short term such as 5 years with a balloon payment at the end? Any one have any good articles or podcasts to check out on this specific topic?

Does the seller still maintain ownership and title to the property? Can this seller financing strategy only happen if the property is free and clear? Also, what is the reason for the seller not just keeping the property and keeping 100% of the tenants check for himself, rather than seller finance to you for a lower rate and allowing you to have some cash flow. Is there an exit strategy if I decide to sell the property, can I only sell the seller financed note? Also, if the seller still has a mortgage out on the property, does the "due on sale" clause apply? Perhaps I have this all wrong, but I am looking for some general guidance as I really like the idea of havring a seller financed buy and hold with a tenant already in place.