Seller Finance Explained: investor-focused definition
Seller finance is a real estate purchase structure where the seller provides financing to the buyer instead of requiring the buyer to use a bank loan for the full purchase.
Seller acts as the bank
The buyer and seller agree on purchase price, down payment, interest rate, term length, monthly payment, and any balloon payment or payoff timeline.
Investor analysis focus
Seller finance deals should be judged by cash needed, payment affordability, rental cash flow, ROI, equity position, and exit risk.
Why it is different from flip math
Seller finance is not primarily a rehab-resale formula. Terms can matter more than price because cash flow and financing structure drive the opportunity.
Frequently Asked Questions
Seller finance is when the seller carries financing and the buyer pays the seller over time.
It is the amount financed by the seller after the buyer’s down payment.
Yes. Dealzo includes seller finance logic for payments, terms, cash flow, and ROI.
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