Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

The Biggest Downside For Sellers #sellerfinancing

21 Jan 2023 · 1 min

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In this brief segment, Christian Osgood highlights the primary drawback of seller financing for sellers of buildings: it may not suit those who need to extract the full cash proceeds from a sale to reinvest and scale their business. He explains that while seller financing can offer tax advantages, these benefits are irrelevant for sellers focused on immediate cash for growth. Consequently, some sellers will decline seller‑financing offers, and that outcome should be accepted as normal.

Chapters

Biggest con I see in seller financing, if you are the seller of a building, is it might just not be a good fit. If you want cash out, say you're building your business and you just want to scale up, if you're in build mode, you want to pull out as much cash as you possibly can from a sale, the full amount that you can, and reinvest it to grow your business. Now, if you're talking to someone trying to convince them on all these benefits of seller financing, oh, it's going to help you with taxes, it doesn't matter if someone's not in that cycle in their business. Just know it's not for everyone, you're gonna get some nos, and it's okay.