Seller financing has almost no real downsides, unlike bank loans with their high fees and slow closings. You can negotiate any interest rate, put zero down, or structure creative deals that banks won't touch.
Chapters
So as far as seller financing goes on its own, there's not a whole lot of drawbacks. I'm working on my first bank loan right now, and the amount of fees are a huge deal. But it took so long to sign, it was ridiculous. And so the actual drawbacks to seller financing in itself, there really aren't any. Probably the capital is phenomenal, and whether you get it at 2%, 6%, or 10%, it's really irrelevant as far as structure. You can buy stuff zero down. You can do seller refinances. There's a lot of ways to play the game that most people aren't familiar with.