Can somebody please educate me on the pros and cons of seller finance options. I want to get my foot in the game with buying a Cash flowing property. Little to no capital.
I haven't done a seller financed deal yet, but I've been doing obsessive research in the past couple weeks.
This pros of this purchasing strategy are that the terms are negotiable, and you can get away with putting low or no money down in exchange for a favorable interest rate and sale price to the owner. I'm personally looking to structure my next deal this way, so that I don't need to dump a ton of my own money into acquiring the property.
From what I understand, the cons are just about the same as if you went with a
mortgage through a bank. The seller can take back the house if you fail to make payments. Other than that I see no reason why this is any more risky than Conventional financing. Someone correct me if I'm wrong!