Seller financing sounds sexy… but sometimes it’s lipstick on a pig.
Here’s how I quickly test it:
If the seller will do:
- lower interest
- longer term
- interest-only period
- low down payment
Then it can work.
But if the seller wants
❌ 8–10% interest
❌ big down payment
❌ short balloon
❌ no flexibility
That’s basically bank debt with worse terms.
The best seller finance deals are created when the seller wants:
- steady income
- tax benefits
- a clean exit without management
If you’re negotiating seller finance, ask this: If I give you your price, can you give me my terms?
That line is powerful.