How I'm Using Seller Financing to Structure Deals That Have Been Sitting 500+ Days

Question

Been spending a lot of time analyzing multifamily assets that have been sitting on the market for 300, 400, even 500+ days and noticing a pattern.

Most of them aren't bad deals — they just can't close conventionally. Wrong price point for traditional financing, seller expectations don't match the market, or the numbers only work with creative structure.

My approach has been to identify these assets, underwrite them against actual NOI, and approach sellers with owner financing proposals — typically 10% down, seller carries the note at a below market rate with a 5 year balloon.

The math usually works better for everyone. Seller gets consistent monthly income plus their full balloon. Buyer gets in with less capital and room for value add.

Curious if anyone else here is working this angle — specifically on multifamily 20 units and up. Would love to connect with people doing creative finance at that level.

Dennis Bamford · Answer

I am part of a group that offers the same terms you are using, but we have found that most of the DOM's over 300 are assets that the owner is in a position to sit and not open to the terms we propose. They are wanting 30% or more down with a short carry on the note.

You will find a owner that will work with you but you will have to be ready to GRIND it out to find that one seller.

The question you need to ask yourself...Is the juice worth the squeeze?

Good Luck and happy hunting!

Andrew Caranto · Answer

Solid approach. The long DOM assets are where creative finance shines because conventional buyers already passed. Curious what you're using to track your pipeline and underwriting across multiple properties at once. When you're structuring custom terms for each deal, that data management piece becomes the real bottleneck.

How I'm Using Seller Financing to Structure Deals That Have Been Sitting 500+ Days

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