Hello I am actively looking for my first real estate deal. I am in long island new york, and looking for a rental property while I am still leaving at home. I have enough money saved up for a good down payment. Mostly looking at single or 2 families because the prices are very expensive in my area. I put in an offer on a 2 family and the seller is offering seller financing. I don’t have the terms yet as this just happen. Looking for some info on what benefits there are for me. And also selling points to use.
Thanks for your help
The benefits of seller financing for you ?
How about not having to deal with a bank for starters. The bank is the biggest headache of all in most RE endeavors.
Like most things in life, it's a double edge sword.
Buyers benefits include being able to negotiate terms, lower down payment, not having to qualify for a loan with a bank (if you have issues preventing approval).
Try to avoid paying points up-front. It's wasted money in most instances.
If your asking these questions here, find a friend who can help so you don't get fleeced.
Drawback is usually the loan is more expensive/higher rate, they may not report to credit agencies (won't improve your credit, but this can keep your documented DTI ratio lower which may be good) and if they do use a servicer, somebody (you, unless you negotiate otherwise) will pay a service fee to have your money processed every month.