Seller Financing Explained (High Level)

[Devin James]

Seller financing is when the person selling the property acts like the bank.

Instead of the Buyer going to a bank for a loan (mortgage), the Seller lets the Buyer make payments directly to them over time.

There’s usually a promissory note that spells out the loan amount, interest rate, monthly payment, and any balloon payment (a big lump sum due at a future date).

It’s kind of like a rent-to-own or “buy now, pay me later” deal, but with ownership transferring right away.

Pros:
- Easier to Qualify for Loan
- Flexible Terms
- Usually a smaller down payment

Cons:
- Usually a Balloon payment
- Harder to Find
- Higher Interest Rates

[Mike Grudzien]

You didn't mention tax advantages for the Seller.