What is Seller Financing?
Seller financing is when the property seller acts as the bank. Instead of going to a traditional lender, the buyer makes payments directly to the seller over an agreed-upon period. This opens up opportunities for both parties that traditional financing cannot.
How to Structure the Deal
- Agree on a purchase price — often at or near market value
- Negotiate the down payment — typically 5-20%
- Set the interest rate and term (often 5-30 years)
- Include a balloon payment if desired
- Use a promissory note and deed of trust for legal protection
Seller financing is especially powerful when combined with properties acquired at tax deed auctions, where you can offer flexible terms to buyers while still earning a significant return.
Jason Porter
Jason has been investing in real estate since 1990. Father of four and grandfather to eight, Jason focuses on Tax Deeds, Tax Liens, and Creative Financing to build wealth and help families in underserved communities. Author of the Amazon Best Seller Real Good Deeds.