What nobody tells you about buying with seller financing

21 Oct 2026 · 1 min

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In this video, Andrew Gazdecki shares his hard‑learned lessons from using seller financing to acquire an online business. He details his purchase of the app "Leeds Black" for $97,000—paying half up‑front and the remainder via a seller note that took 21 months to retire. By walking through the cash‑flow numbers (approximately $3,000 monthly revenue, $100 in expenses, and $2,500 monthly payments to the seller), he shows that the seller note is not tax‑deductible, meaning the buyer still owes taxes on the gross revenue. After two years of ownership, the net profit was only about $1,000, illustrating how seller financing can leave an owner with years of little to no return while still carrying the loan risk. The speaker warns that many buyers underestimate these financial realities and assume seller financing is a low‑risk shortcut.

Chapters

I think it took me probably longer than it should have to really understand the financial side of using seller financing. For example, my biggest acquisition, Leeds Black for $97,000, I paid half upfront, the rest with seller financing. It took me 21 months to pay down that seller financing. But what people don't understand is that if the app is only making, you know, say it's $3,000 a month on average, and you've got, say, $100 in expenses, but then you're sending $2,500 to the seller. seller every month for 21 months. You also have to pay taxes on the revenue because the seller note is not deductible, right? If you run the numbers, after like 2 years of owning this app, I'd made like $1,000. And then they're like, I'll just use seller financing on that. Then I can tell they haven't really thought that through. And it means you could go years without any return while still having the risk of having to pay that loan.