Ways to structure a seller finance deal

[Ryan Cleary]

I have a property I would like to sell:

-Market value: 450,000

-Purchased in 2020

- Mortgage has $153k left at 4% (conventional)

The market is slowing down a bit and since I no longer would qualify for conventional loans, I am considering offering seller financing to generate some interest and get the best sale price.

I would love some ideas of how to structure this properly. 

To my knowledge, it is better to have a buyer assume the mortgage, I just dont know how the rest of the terms would be.

[Chris Seveney]

@Ryan Cleary

Most mortgages are not assumable. You would need to sell it subject to thus your name would stay in the loan. Seller financing does not always sell for more money and if there are big price declines then you may end up having to foreclose

My recommendation is to sell it with borrower getting traditional financing and put that $ in a tax friendlier account than loan interest = ordinary income rates