Pace Morby explains seller financing through a simple example: buying an iPhone with monthly payments directly from the seller, no bank or credit check needed. He walks through how the seller becomes the lender and what that transaction looks like in practice.
Chapters
Who knows seller— what seller finance is? Let's break down what seller finance is. What kind of phone do you have? iPhone. Is it paid off? So I want to buy that iPhone. What do you think that iPhone's worth today? $100? Bullshit. She's got an iPhone, so no matter how old or broken the iPhone camera is, it's better than an Android, so it's definitely more than $100. Okay, so I want to buy this iPhone from you, but I don't have any money. Would you sell that iPhone to me for, let's say, $200 if I made you a $20 payment every month? I'm not going to give you a down payment. You're going to give me the phone, and every month I'm going to pay you $20. For 10 months. It's $200, right? That's called seller finance. You are the seller and you are financing me, the buyer. I become the owner of the phone before I even give you all the money. That's called seller finance. Did we need a bank to do that? Did I need to give you my credit, my credentials, tax returns, P&L, any of that fancy dancy stuff the Android people love doing, spreadsheets and all the things?
