In Q1 of 2022, when interest rates were rising, our future primary residence came on the market.
The seller wanted cash or seller financing at 4.5% interest, but we couldn’t pay cash.
I realized that to win the deal, we needed to make it more attractive to him.
So I offered 5% interest—which, at the time, felt crazy because just 4 months earlier, rates were around 3%.
But the deal still worked well long-term, and after talking with the seller, it became clear that he actually preferred financing over cash.
Deal-making is about structuring terms that make sense for both sides.
Would you have done the same?
Being creative can take you so far in this space. Good move. And yes I would do the same. Worst case scenario you might overpay in financing for a bit but there's always the chance to sell or refi in the near future. I say this without knowing all the details of your deal. I'm assuming it's a good one and worth the trouble.
In Q1 of 2022, when interest rates were rising, our future primary residence came on the market.
The seller wanted cash or seller financing at 4.5% interest, but we couldn’t pay cash.
I realized that to win the deal, we needed to make it more attractive to him.
So I offered 5% interest—which, at the time, felt crazy because just 4 months earlier, rates were around 3%.
But the deal still worked well long-term, and after talking with the seller, it became clear that he actually preferred financing over cash.
Deal-making is about structuring terms that make sense for both sides.
Would you have done the same?
Being creative can take you so far in this space. Good move. And yes I would do the same. Worst case scenario you might overpay in financing for a bit but there's always the chance to sell or refi in the near future. I say this without knowing all the details of your deal. I'm assuming it's a good one and worth the trouble.
In Q1 of 2022, when interest rates were rising, our future primary residence came on the market.
The seller wanted cash or seller financing at 4.5% interest, but we couldn’t pay cash.
I realized that to win the deal, we needed to make it more attractive to him.
So I offered 5% interest—which, at the time, felt crazy because just 4 months earlier, rates were around 3%.
But the deal still worked well long-term, and after talking with the seller, it became clear that he actually preferred financing over cash.
Deal-making is about structuring terms that make sense for both sides.
Would you have done the same?
Being creative can take you so far in this space. Good move. And yes I would do the same. Worst case scenario you might overpay in financing for a bit but there's always the chance to sell or refi in the near future. I say this without knowing all the details of your deal. I'm assuming it's a good one and worth the trouble.
In Q1 of 2022, when interest rates were rising, our future primary residence came on the market.
The seller wanted cash or seller financing at 4.5% interest, but we couldn’t pay cash.
I realized that to win the deal, we needed to make it more attractive to him.
So I offered 5% interest—which, at the time, felt crazy because just 4 months earlier, rates were around 3%.
But the deal still worked well long-term, and after talking with the seller, it became clear that he actually preferred financing over cash.
Deal-making is about structuring terms that make sense for both sides.
Would you have done the same?
Being creative can take you so far in this space. Good move. And yes I would do the same. Worst case scenario you might overpay in financing for a bit but there's always the chance to sell or refi in the near future. I say this without knowing all the details of your deal. I'm assuming it's a good one and worth the trouble.
When I bought the home I'm currently in back in 2001, I was working at First Union (now Wells Fargo) and got the employee rate. People couldn't understand how I was able to get the amazing 7.25% rate I did. Rates right now are actually pretty good. It's real estate taxes, insurance, and the ratio of rents to property values that are killing deals in this day and age.
When I bought the home I'm currently in back in 2001, I was working at First Union (now Wells Fargo) and got the employee rate. People couldn't understand how I was able to get the amazing 7.25% rate I did. Rates right now are actually pretty good. It's real estate taxes, insurance, and the ratio of rents to property values that are killing deals in this day and age.
100%!
Taxes & Insurance are terrible; rentals are so difficult to make work right now.