Before You Sign Any Cash Offer...

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 In some situations, a homeowner can sell a property and finance the purchase for the buyer directly.

This strategy is called seller financing.

Instead of receiving the full price at closing, the seller receives monthly payments from the buyer, often at a negotiated interest rate.

For sellers with significant equity or low mortgage balances, seller financing can sometimes create higher overall returns than a traditional sale.

However, it also requires clear documentation and an understanding of the risks involved.

This guide explains the most common forms of seller financing and when it may or may not make sense.

In this short guide you will learn:

 • How seller financing works in a real estate transaction
• What a wrap mortgage or subject-to structure means
• When seller financing can increase total proceeds from a sale
• Legal and financial risks homeowners should understand first