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Solving the low NET problem with Seller financing

Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690
winter garden fl townhouse
Hi folks. So I met with a seller a few weeks ago that had just purchased a Winter Garden Fl townhome for $249,000 late last year. She bought with an equity line on another property she owns.
Her property is currently worth $265,000 but she is adamant she won't sell unless she can NET $265,000. Well, we know that won't work! What you want has no baring on market value.
BUT.....with a little creative thinking I was able to present to her a plan that would far and exceed her desired NET.
Good ole' seller financing!!
This stops the outgoing expenses and turns it into cash flow. Plus she will get $306,658.05 in her pocket over the 5 year period.

It would look like this:
Purchase price                 $265,000
20% down payment      (    53,000)
Seller Financed                $212,000

$212,000 @ 6% over 30 years with a 5 year baloon payment

59 payments at $1,271.05=            $  74,991.95
1 Balloon payment                          $198,546.10
Total payments over 5 years        $273,538.05
***Downpayment-C Costs                 32,565.00
Total to Seller over 5 years        $306,103.05                               

****Closing costs at $265,000

Down payment                 $53,000  
6% commission              (   15,900)
Doc Stamps                     (     1,855)
Title Insurance               (     1,840)
HOA Estoppel                 (        400)
Muni Lien Search          (        190)
Misc                                  (        250)
**Cash to seller at close     $32,565

**This figure does not include payoff of any liens, mortgages, property taxes or HHOA dues that may be owed.

Think we can sell her on this? It's a great solution for her.


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Stacie Streets
Fairway Independent Mortgage Company - Colorado Springs, CO
Mortgage Ninja!!

Bryant Tutas I am sure you might be able to sell HER on this, but where are you going to find this buyer that has $32,000 in the bank and is willing to pay 6% interest with a 5 year balloon? This might be an option here in Colorado where income derived from the legal sale or ownership of anything in the marijuana industry is prohibited from being used for a traditional mortgage but I am not sure that there are too many of these buyers around to make that scenario work...

Jul 05, 2017 11:32 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

I've actually done quite a few of these. We have many people that have been through short sales that have accumulated cash but can't qualify for a mortgage. These seller financed deals are no qualifying. Just need income and cash. They work great for all parties.


Jul 05, 2017 11:40 AM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Great creative solution and where you've done it before you can show the benefit in real life. 

Jun 28, 2018 05:34 PM