Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

How To Identify Properties Where Seller Financing Could Work

17 Aug 2023 · 0 min

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In this brief discussion, the speakers explore how to spot real‑estate assets that are good candidates for seller financing. They emphasize that the key prerequisite is that the seller must have sufficient equity in the property to finance part of the purchase. The conversation illustrates a practical approach: acquiring a portfolio where half is bought with a conventional loan and the other half is seller‑financed with little to no cash down, leveraging the seller’s cash from the conventional portion. The dialogue highlights the market gap where sellers cannot sell traditionally and buyers cannot purchase traditionally, positioning seller financing as a solution for such mismatched situations.

You've got an opportunity here where people want to sell their assets, but they can't sell them traditionally. People want to buy these assets, but they cannot buy them traditionally. So what are some ways that you guys have figured out how to identify properties where seller financing could work?
Well, they have to have equity. You can finance what you own. We're buying a deal right now and they've got equity in their asset, but we're buying half of that portfolio conventionally and the other half seller financed next to no money down because all their cash is coming from the conventional purchase.