Seller Financing Question

2 Replies

As a new real estate investor I've been trying to learn more about seller financing. One question I have is does a seller financed sale typically require any kind of a down payment? Are they typically down without one? 

Seller financing deals can be structured in all kinds of ways - it just depends on what you and your seller agree to. You could always present your seller with multiple options - one with 100% financing and one with a down payment and see which they accept. The key is to find out what matters to your seller and try to work with that in ways that are still advantageous to you. Our last acquisition was seller financed. The seller was a family member so we got an amazing deal. However, because of the stage of life said family member was at, immediate cash on hand was valuable to them. We came to an agreement on a reasonable down payment that met their immediate needs without forcing us to give up too much of our cash reserves up front.

Originally posted by @Brady Johnsrud :

As a new real estate investor I've been trying to learn more about seller financing. One question I have is does a seller financed sale typically require any kind of a down payment? Are they typically down without one? 

 Yes, I always put $100 down. It's a way of "sealing" the deal in the Seller's mind. He has that crisp one hundred dollar bill that he pulls out of his pocket at night and looks at it and says "I just sold the house". 

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