Seller Financed Airbnb

[Pablo Flores]

Anyone here have experience doing this and have any insight? Owner is willing to seller finance and am weighing the pros and cons of doing that vs getting an investment loan. Spoke to my lender and I can still do an investment loan at 25% down, but since the owner is willing to carry the note I am wondering if that is a better option. I’m not super familiar with seller financing so I want to have more knowledge before I come to the negotiation table.

I have multiple STRs in the area so I’m confident the numbers make sense

[John Underwood]

Originally posted by @Pablo Flores:

@John Underwood @Avery Carl

What if I negotiated a 10% down payment with a 5% interest rate and a 7 year balloon payment. Right now the terms on an investment loan I could get are 25% down with 3.25 interest rate.

 Ask them if rhey would be happy with you paying 4 times the interest rate of a saving account and see what they say. You concede too much too soon. Ask how long they would like to finance this and try and get 10 or 15 years. You can always negotiate less, buts it hard to negotiate more time if you've already offered less.

You can negotiate from there.

If you don't feel a little uneasy about your offer then you offering too much.