Seller Financing Cash-Flow Issue

[Mark Spelman]

Hey BP Friends,

I’ve dug up several seller-finance deals lately in an effort to acquire more properties for less money down than your typical 20-25%. The last two opportunities I’ve had, sellers are willing to finance 90-95% of the deal at an interest rate of 4-6%. The idea here is to get the seller closer to the price they want so that I can get the terms that I want. The problem is, this becomes increasingly more difficult to find a property that cash flows under this structure.

Has anyone else run into this same conundrum? How have you circumvented or solved this issue? Are there any creative “tweaks” to this type of structure that I am not thinking about that could increase the cash flow?

Thanks in advance!