http://blog.wenxuecity.com/blogview.php?date=200807&postID=23047
seller financing can be a win-win situation for both buyer and s 2008-07-17 19:34:13
seller financing can be a win-win situation for both buyer and seller, it is done mostly on multifamily units, hardly done in SFH because you can get better terms from a bank on residential house.
for seller, it boost sales price and delay capital gain taxes, for buyer, it will be easy credit and lower down payment.
commercial loans are much harder to get now days, expect 25% minimum down, some bank even requires 30 to 40% before they even consider the project, for new investor, if the seller willing to finance the project and term is good, go for it. after 3 to 5 years, you can present to the bank your cash flow and other finance report to help secure a permanent loan.
most seller financing are 5 year balloon, 20 year amortize, and usually 1pt higher than standard bank rate.