Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Is Seller Financing For Everybody?

17 Feb 2024 · 0 min

Watch on YouTube

0:24

In this brief YouTube segment, the speaker advocates for seller financing as a universal option for real‑estate investors. He argues that traditional bank financing is slow, expensive, and requires a rapid closing—often within 60 days—making it difficult to align with the seller’s timeline and the buyer’s preparation. By opting for seller financing, the buyer can close quickly and then have a three‑year period to organize the property’s financial books and operations according to their own standards. This extended window, the speaker says, greatly improves the chances of later securing a conventional bank loan, as lenders will view a well‑managed property with solid documentation more favorably than a rushed transaction.

Would you recommend seller financing to everybody? I would recommend seller financing to anyone. One, it's difficult to close with the bank and it takes forever and it costs a lot of money. If you want to get into a bank product, I still rather close seller financed and give myself like 3 years to get through the bank project. That way I have books done my way, I'm very confident that I can run the property the way it needs to be run. It's going to be a lot easier to get into a bank product if you have 3 years instead of say 60 days to close a transaction with the bank.