Real Estate Agent · Guilford, CT · Member since 2014 · 193 posts · 88 votes
Hi All,
I have a deal that is comprised of 4 units on 3 linked parcels of land. My debt to income ratio is too high to get bank financing so I would like to ask for seller financing. I ran the numbers with a 30 yr fixed 6% bank loan and the numbers worked (Cashflowing $250 a unit) how do I run numbers for seller financing? The owner is 84 and wants to retire. He's not going to go for 30 year and when I amortize the loan over shorter periods of time the cashflow dwindles making it not such a great deal. How do people make seller financing work?
Investor · Dyersburg, TN · Member since 2015 · 320 posts · 100 votes
10y
Well its either a great deal or not...I have a seller who is doing seller financing...Basically he is financing it on a 10 year balloon note with 30 year amort. He is taking smaller payments and in the end, I will refinance the property and pay him out. Hoping to do this year 8. My deal doesn't sound as large as your deal does...So that may or may not work for you. Every deal is different.