Builders have levers individual sellers don’t:- They can buy down rates into the mid-5s (I've seen as low as 3.875% recently in Reno, NV...) while resales sit at 6.5%+/-- They offer closing cost credits without blowing up appraisals- They price off absorption and carry costs, not emotions- They HAVE to push product, no matter the market conditionsA good number of resale sellers are still anchored to 2021–2022 pricing, and DON'T have to sell.

I own a home - my primary residence- in Seattle and plan on developing the back portion into couple/several units.  I will be able to subdivide the lot - back units will be condominiumized.   I will either sell all th...

Friendly neighbor looking for a few extra $$?

Daniel Williams Land sales are a vast majority of seller carry back.. also U can do like the big note buyers do and follow public records then send we buy notes direct mail..

This reduces your payout based on percentage coverage carried and full replacement cost.  

Now , dieing this time they had more suprises and expenses , I had to pay for a appraisal, and richer values etc , which was charged to my card the day after I said I was going to have another money lender work on getting it closed, since it was paid and ordered I went ahead with them thinking they were going to close that Friday, that didn’t happen and now they said they can easily close it on asset based , we were suppose to close again, didn’t Happen, now I don’t really don’t know what’s going on, responses are days apart or short one sentence etc , ife had to go out of my way reaching out to processor and now the company owner who won’t answer the questions, but give one liners avoiding specific answers, I’m just tying to figure out what might be the last puzzle piece, apparently the loan guy reached out and had a confernce call without me, discussed doing a seller carry back because now the underwriting is saying they are only loaning 70k of purchase and I’m having to have like 30 k in closing.

At best, maybe an expensive private or alternative lender would consider it, but even that’s a stretch.In my opinion and most importantly beyond the financing hurdles, you have to ask why a seller is willing to carry a 30% second up to the full purchase price instead of selling the property in a normal, arms-length transaction.

Some of the carries doubled and tripled their premiums making it almost impossible for homeowners to continue doing business with them.

Like Bill said, there are NNN and UPREITs are other passive options that qualify for 1031 treatment, but also carry their own considerations and potential drawbacks depending on what your future investment goals are.

But here’s something most people overlook:  Who you lend to matters just as much as the return you’re targeting.If you’re choosing between lending directly to a real estate investor or partnering with an established private lender, here’s why the private-lender route often carries much lower risk:Diversification.