Pros and cons seller financing

[Stacy Pettersson]

Looking to purchase my 2nd property. Came across one that involved seller financing. Thoughts?

[Account Closed]

I've purchased two properties with seller financing - many moons ago.  One was about 2 acres of undeveloped land, the other a condo.  Both worked out great.  We just used the title insurance company to take care of paperwork without real estate agents on the land, I put about 35% down and made monthly payments.  I can't remember how long the contract was for, but I developed the property and sold it before I paid off the mortgage.

The condo I bought through an agent and again we just used the title insurance company, though. It was during the crash in the 1990's. Seller let me just put 5% down, 10% interest (which was just a couple points above what interest rates were back then), 10 year balloon payment. I also sold that one after just a few years and paid it off before balloon payment was due. I hated the HOA lol.

But, it was no big deal - if you understand RE contracts.  If not, just use an agent and a title company loan officer or a RE lawyer if that's how things are done where the property is - some states use lawyers instead of title companies.