CalculateRealEstateROI

Financing

Seller Financing Strategy

Structuring acquisitions where seller acts as the bank for tax, speed, or distressed-asset reasons.

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

Core concepts

Custom terms

Negotiate rate, term, amortization, balloon.

Tax deferral for seller

Installment sale spreads capital gain.

Examples

  • $300k purchase, $30k down, $270k seller note at 5%, 30/10.

Practical applications

  • Distressed or aged sellers.
  • Properties without traditional financing access.

Common mistakes

  • Skipping legal documentation.
  • No exit financing plan for balloon.