Instead of receiving a lump sum and depositing it into a low-interest account, the seller can act as the bank and earn 5–8% interest on you own money.

• Over the loan term, that can add tens or hundreds of thousands in extra income.

Example: Selling for $275,000 at 6% interest over 15 years earns roughly $142,000 in interest.

• Seller financing qualifies as an installment sale under IRS rules.

• That means the seller defers capital gains taxes and spreads them out over the loan’s life — keeping more money invested and lowering your yearly tax bill.

No 5–6% agent commissions — potentially saving $10,000–$20,000+ on the sale.

• Sellers can often ask a slightly higher price since they’re offering flexible financing terms.

• Or they can sell faster, since more buyers qualify (especially self-employed or credit-rebuilding buyers).

Instead of a one-time payout, you get consistent, predictable cash flow every month — almost like owning a bond or rental property without tenants.

Many long-time landlords want to retire from property management — but don’t want to lose income.

• Seller financing allows you to sell the property yet still receive monthly payments, similar to rent, without maintenance headaches.

The seller holds a mortgage or deed of trust. If the buyer defaults, you can take the property back — often keeping the down payment and any payments made.

Seller-financed deals offer discretion and a quick low-hassle transaction - often closing through a title company or attorney without public MLS listings, appraisals, or financing delays.

• Seller financing is way to genuinely help your tenants or local families become homeowners.

• Seller financing lets you “be the bank” and give someone a chance without dealing with rigid lender requirements.