Donna Genie (YouTube, Aug 17, 2023) discusses using seller financing when selling a campground. She frames the issue around the current high-interest-rate environment which makes bank/SBA financing harder; seller financing can speed up a sale and possibly yield a better rate for the seller, but carries risks such as buyer default—mitigated by requesting collateral.
If you've been thinking about selling your campground, the current interest rate situation makes that a little more difficult than it used to be. Campgrounds are still in demand but it is difficult to finance them and pay the same price tag anymore because interest rates are up there. So many are considering seller financing. Let's talk about it. Should you consider seller financing? What are the benefits and what are the risks? First let's talk about the benefits because interest rates at the SBA are so high and for banks you may be able to get a pretty good interest rate on your own. So faster sale probably easier on you as a seller. All right, let's talk about the risks. The risks are that the buyer defaults and they don't make the payments to you. So what's your remedy in that situation? Well, you can request collateral when you do the seller financing and if they default that means that you go after the collateral.
