CalculateRealEstateROI

Financing

Seller Carry Financing

Negotiated installment sale where seller holds the note, providing flexibility and tax deferral.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Tax deferral

Seller spreads capital gain over installment payments.

Terms flexibility

Rate, term, amortization all negotiable directly.

No bank qualification

Buyer skips bank underwriting — speeds close.

Examples

  • $300k purchase: $50k down, $250k seller note at 6%, 30-year amort, 7-year balloon.

Practical applications

  • Aging sellers seeking income.
  • Off-market deals from tired landlords.

Common mistakes

  • Skipping title insurance.
  • Vague balloon terms.