In the video attached here, I break down how I recently structured a seller finance deal at just 1.5% interest—yes, you read that right. These opportunities are rare, but they’re out there if you know what to look for. Here are the Top 10 things you need to know when looking for seller-financed deals:
1. The Seller Must Be Willing and Capable
This is the non-negotiable starting point. Some sellers will openly offer financing in their listing—that’s a great sign. You can always ask, but if it’s not advertised, the chances are much lower.
2. The Listing Agent’s Knowledge Matters
If the property is listed with a real estate agent, it helps tremendously if that agent has experience with seller financing. A knowledgeable agent smooths the process, avoids unnecessary confusion, and helps the seller understand the benefits.
3. Don’t Position Yourself as “Unqualified”
It’s critical that neither the seller nor their agent thinks you’re asking for seller financing because you can’t afford the property. This misconception can kill a deal before it starts. You want them to see it as a strategic option, not a desperate need.
4. Terms Are Negotiable—Not Just the Interest Rate
Seller financing isn’t one-size-fits-all. You can negotiate down payments, balloon payments, amortization schedules, and more. Sometimes flexibility on one term can get you a better overall deal.
5. Motivation is Key
Seller financing often makes sense when the seller is motivated—maybe they want steady income, tax advantages, or to move a property that hasn’t sold conventionally. Understand why the seller might finance, and structure your offer to meet that need.
6. Always Use a Real Estate Attorney
This isn’t a handshake deal. You need a professional to draft documents that protect both sides, clearly outline payment terms, and ensure compliance with state laws. Skipping this step is risky.
7. Think Beyond Traditional Properties
Seller financing can be especially attractive in unique situations: land sales, properties needing rehab, commercial real estate, or investment properties where banks hesitate. Keep your eyes open outside the conventional box.
8. Due Diligence Doesn’t Go Away
Even if you’re not dealing with a bank, you still need inspections, title searches, and proper underwriting. A poorly structured deal can create bigger problems later.
9. Be Transparent About Exit Strategies
Whether you plan to refinance later, sell, or hold long-term, be upfront with yourself (and often with the seller). Knowing your exit makes it easier to structure terms that work for everyone.
10. Relationships Drive Opportunities
The best seller-financed deals often come from trust. Build strong relationships with agents, investors, and property owners—you’ll hear about opportunities before they’re public.
Check out the video here where I break down the exact deal I structured at 1.5% interest and show you how to spot opportunities like this in today’s market.
