Is “Seller Will Finance” The Ticket to Your Business Fortune?

How do you find owner will finance properties, such as real estate or a business? Look in the business columns of any large-city newspaper under the heading “Businesses for Sale”. Also, look in the real estate columns of your local paper under the heading “Apartment Houses for Sale,” or “Business Property for Sale.”If you look carefully, you will probably soon find a number of ads which say, after the description of the property which is for sale, the following: “Owner will finance”. Or the ad might say: “Seller will finance”; or “Financing available”.What these ads mean is that the seller or owner of the property-be it a business, apartment house, shopping center, etc.–is willing to finance your purchase of the property. So you do NOT have to go to a bank, a finance company, a factor, a relative or a friend to borrow the money you need. Rather, you have a cozy sale between yourself and the seller.While it is true that the seller will probably register the debt you have after you buy the property, you do not have to face any long-faced loan officer at a lender to get your money.Of course, you never really get the money when the seller finances the sale. Instead, you take over an income producing property of some kind and have the right to earn the income from the property. The seller does not get any of the income. You will, of course, have to pay the seller each month a certain amount on the loan you obtained from the seller. But this money will come from the income the business generates, not from your own pocket or bank.Questions:What kind of a seller or owner would be willing to finance the sale of a valuable income property? There are many different types of sellers who are anxious to get out of an income-producing property for one reason or another, such as other business interests, divorce or separation, death or illness in a family, or retirement.Once you spot any reasons such as these, you can be fairly certain that you have a good chance of having the seller finance the sale to you. But you must be alert for such opportunities.How can I convince the seller or owner that I’m the right person to take over the income property? To convince the seller or owner that you are the “right person”, you must “sell yourself” to the seller. You must convince the seller that you are hard-working, dedicated to the business, interested in the business, reliable, and honest.Once you convince the seller of these, your chances are excellent. So keep this in mind when talking to the seller.The usual way a deal which is financed by the seller works is that you take over the business for no money down and repay the seller on a monthly basis. To accomplish this, you should:Pay the “asking price”Avoid haggling with the seller;Be willing to agree to all the terms the seller sets upBy having the seller finance the sale, you will probably pay more for the property and a higher rate of interest. But if you are just starting, this may be your great chance. I see all types of real estate financed this way, many different commercial businesses, factories, etc. So don’t think that you are restricted as to the type of business you might buy when the seller finances it.To get 100+% financing, ask the seller to lend you a few thousand dollars for operating capital by allowing you to keep the first few week’s income from the business without making a payment to the seller. Or, if you’d prefer to have just 100% financing, do NOT ask for this provision.You will need an attorney to protect you in such a sale. Instead of paying the attorney, ask that the fee the attorney would normally collect be paid in the form of a promissory note. You will then pay the attorney a few months after you take over the business for no cash down!For much more information and assistance with locating and purchasing owner-financed properties, visit our site at, where there are articles, reports and complete business courses that will help you to success in your owner-financed investment activities.

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