Catherine BellEmpowering Women to Create Financial Freedom Through Passive Income, Real Estate, and Social Impact

Seller Finance Secrets: Unlocking Deals with Earn-Outs! #shorts

2 Aug 2026 · 1 min

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In this short dialogue, Speaker A and Speaker B discuss a seller‑financing deal for a cash‑flowing property. They examine the seller’s asking price of 7.5 million versus a proposed offer of 6.5 million, and outline an earn‑out structure where the buyer pays 4 million upfront and the remaining 3.5 million is contingent on performance after 12 months. The conversation then shifts to risk concerns: if existing tenants vacate after the acquisition, the buyer may lose cash flow, so they consider whether to pay the full price up front or retain a performance‑based component. Speaker A emphasizes the need for a post‑acquisition plan to re‑lease the property and protect the investment.

Chapters

Keep going. Keep going. Okay. The Shark Cashflow Offer says to offer 6.5. Why? Great seller financing structure. Maybe we can try to get them to do that. Earn out performance-based. Where you going? What? Tell them what an earn out performance-based is.
Like, this is a new lesson. I don't think so.
No. Earn out performance-based. So I'm going to get it. They want 7.5. I'm going to give them 4 and then earn out performance-based is the 3.5 that I'm going to give them after I've been there 12 months.
Got it. Okay.
Right. Because what if I take over and then everybody Everybody moves out. You think I should give them their full asking price now?
No, because there's no tenants.
Exactly. We're going to, we're going to give them a sharp.
What's up, Miso?
Because again, we bought it based on 100% leased out. And then when I buy it and they disappear, now what? Uh-oh. Where'd my money go to get into the bank? So unless I have a plan of redoing something there, which I 100% do, like I can't buy those people out fast enough.