Seller Financing sale -vs- traditional sale

$315,000

-  22,000

-250,000

=$43,000

$63,000

-22,000

$41,000

$1,676

-1,342

  $334

x 60 (months)

$20,000

$61,000

sales price

costs to sell @ 7%

Balance owed on mortgage

Profit

CASH RECEIVED AT CLOSING

Seller Financing Buyer down payment

costs to sell (from above)

Net cash received by seller up front

Profits from monthly CASH FLOW

Buyer monthly PI payment @ 7%

Seller underlying mtg payment @ 5%**

Monthly cash flow paid to seller

number of years financing provided

total monthly cash flow paid to seller

COMBINED PROFIT + CASH FLOW

$300,000

-  20,000

-250,000

=$30,000

N/A

N/A

=$30,000

N/A

N/A

N/A

N/A

N/A

$30,000

• Homes selling with seller financing typically sell for 5% to 10% more than homes not offering seller financing 
• Buyer down payment in above example is 20%.  buyer down 
• Down payments range from 10% down to as much as 50% or more).
• Seller's mortgage balance and interest rate will effect the amount of monthly cash flow received

• Buyer pays taxes, insurance & HOA
• Buyer pays for all maintenance
• Buyer pays for all needed repairs

What if I own my property free & clear?

• The entire $1,676 is paid to seller

How long should I expect to carry the mortgage before I am paid off?

• Over the past 10 years our average length of carry as been 3-4 years