CalculateRealEstateROI

Financing · Guide

Seller Financing

Owner-carry notes — often cheaper, faster, and more flexible than bank financing.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • 5–7% rate typical.
  • No bank underwriting.
  • Negotiate term + DP.
  • Note + DOT.
  • Older sellers most receptive.

Core concepts

Structure

Note + deed of trust; seller becomes lender.

Negotiation

Rate, term, down, balloon.

Receptive sellers

Retirees, estate sales, owners with low basis.

Step-by-step framework

  1. 1Identify seller-carry candidate.
  2. 2Negotiate terms.
  3. 3Attorney-drafted note.
  4. 4Close.

Common mistakes to avoid

  • Verbal agreements.
  • No attorney.

Frequently asked questions

Common rate?

5–7%.

Down payment?

10–30%.

Term?

5–10 year balloon typical.

How to find?

Direct mail + agent inquiry.

Action checklist

  • ☐Negotiated terms.
  • ☐Attorney note.
  • ☐Recorded DOT.

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