Seller Financing
February 01, 2024
by a searcher from Baruch College-The City University of New York - The Zicklin School of Business in New York, NY, USA
For any searchers out there, are you finding it easier or harder to get sellers to agree to seller financing in today's environment?
in Houston, TX, USA
This is a great question. I unfortunately have to give an answer I hate to give: "It Depends".
It depends on the Motivation of the Seller, the Persuasion of the Acquirer and Overall Market Environment (interest rates, SBA Rules and Regulations, etc.).
From what I'm hearing in my peer network of Searchers is that Seller financing is a more preferred method of financing than it was before our current interest rates (Market Environment).
If you've got your game tight, meaning you know the advantages/benefits Seller Finance gives to the Seller (i.e. You can offer him more for the Acquisition because you don't have to deal with the high interest rates, there's a clear tax benefit for the Seller if he/she chooses to do Seller Finance), Seller finance is a normal way to acquire
A lot of the times, you'll find out how motivated a Seller is to get the deal done if he or she accepts Seller Finance as a mode of Finance.
Hope this helps and to your success,
Ovais
in Crystal Bay, NV, USA