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Updated over 6 years ago on . Most recent reply

User Stats

24
Posts
8
Votes
Josh Crockett
  • Newport, RI
8
Votes |
24
Posts

Three Option Seller Financing Strategy

Josh Crockett
  • Newport, RI
Posted

Hello BP, 

I've been trying to search BP for this answer already but the threads I've seen are all cold with no answers so far.  Can someone explain the three option seller financing strategy with a given scenario for us all?  Basically if I'm not mistaken, the strategy goes something like this: 

Option 1:  XX% of full asking price in cash and the deal is complete

Option 2:  XX% of full asking price (higher than Option 1's) with $XX down and the rest financed at XX% interest rate with the seller over a negotiated period

Option 3:  100% of asking price with $XX down at XX% interest rate (lower interest than Option 2) over a negotiated period (longer than option 2?)

I like this strategy a lot but have yet to see a "Pro" (...not just a BP Pro ;) explain how and what works for them.  There's just a lot of variables to fill in.  Thank you in advance for helping a young investor.  Happy hunting everyone! 

-Josh

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