I've been coming across many deals where the seller is offering financing. The obvious con here is that their rates will be higher compared to traditional financing, but what are some other cons and pros to consider?
Con: Usually no credit checks, although they should, so there is no third party checking your ability to pay. There is no standard deal, so you're at the mercy of the seller and ability to negotiate the terms. Usually a 3 to 5 year balloon, depends on the seller.
Pro: can be done with very little down, but up to the seller. Faster closing - no underwriting and other items like appraisals and surveys. Less closing fees. Of course, you're at the mercy of your own knowledge and the seller's intentions.
Con- if you do not already have a relationship with a lending institution, then you are potentially missing out on that time establishing credibility for future lending.
Pro Tip: as @Christopher Phillips rightly points out seller financing is often take the form of 3-5 year balloons. Some investors negotiate a longer time frame (say, 10 years) and then call the seller back at the 25%-50% mark and make the case that "this isn't a life changing amount of money...." how about an early exit at a reduced rate? Some people swear by this approach as they are often able to get the seller to agree to a steep discount at that time that they never would have agreed to up front. Every deal is different, this may or may not work for you.