top of page

Top 3 Seller Financing Options That Have Made Investors Rich

On the count of 3, name the biggest roadblock investors face:





This week we are going to talk about the #1 way to own a property today and pay later. Here’s what it’s all about:

What is seller financing?

When you’re ready to buy an investment property, the first thing you need to think about is funding. How are you going to pay for your property?

Most people think that you need to save money for years and then put a minimum of 20% down. That’s not the case. Sure, traditional financing is an option- but there is another financing option that is much more profitable: seller financing.

With traditional financing, a buyer would get a mortgage through a bank. With seller financing, the seller handles the mortgage process.

There are many different terms for seller financing: owner financing, purchase-money mortgage, land contract, contract for deed, rent to buy, stay to own and so on. However, they all mean the same thing.

Different types of seller financing

As with traditional financing, there are several different types of seller financing. It’s important to choose the right seller financing option to ensure that you- the buyer- profit as much as possible from the transaction. Here are the top 3 seller financing options that have made successful investors rich:

1. Monthly payments: With this option, the seller lays out a deposit, monthly rate and interest rate and the buyer pays these fees to the seller monthly.

2. Rent to buy lease: In a rent to own agreement, the buyer pays a deposit and monthly rental payments for the duration of a lease. After the lease is up, the buyer has the option to pay off the balance and buy the property.