Hey everyone. I just found out about seller financing aka Seller may carry ? Correct ? I looked it up and I️t confused me a bit. Can anyone help me to try and understand? Thank you.

Rather than obtaining a traditional loan from a bank, the seller of the property that you are purchasing will hold the mortgage for you. In other words, they will sell the property to you, then collect monthly principal and interest payments from you, enabling them to collect the selling price plus interest.

The nice thing about seller financing is that it can be very flexible and negotiable. Since there are no bank requirements involved, you can negotiate all you want with the seller.

A “typical” seller financed deal will look like this:

Loan amortized over 15 years

Balloon in 5 years

5% interest

So to break it down a little further, you will pay the seller monthly payments based on a 15 year loan at 5% interest. At the 5 year mark, the balance of the loan will be required to be paid off (the balloon payment) and the seller walks away with all of his money.

@Anthony Barbato do sellers carry on 4 units or only on larger apartment buildings?

@Erica Shaunta Thompson Sellers can carry on anything. I see a good amount of seller financing on single family and duplexes in my area.

After you and the seller agree on price, I would go to a title company and have them hold the deal. They may charge you $20 a month to make your payments to them instead of the seller, but at least you know you won't be taken advantage of. This protects both of you honestly, so I see no reason the seller should not agree to this. The title company will pay the seller monthly. They will be happy to draw up the contract too for a fee if need be and they will make sure you understand what you are signing.