EXAMPLE NO. 1:
This example is representative of our typical transaction. It involves the sale of a modest, older single family dwelling that for one reason or another does not qualify for conventional financing. The sale price is $135,000 with $13,500 down and a Seller Financed note for the balance of $121,500 payable at $1,093.17 per month including 9% interest with a balloon payment due in 10 years. The approximate amount of the balloon payment in 10 years will $86,300.
Several options available to the Seller are:
Option 1A: Sell 119 payments for $71,850 cash now. With the $13,500 down payment, that's $85,350 cash now, plus the Seller gets the $86,300 balloon in 10 years.
Option 1B: Sell 119 payments and 50% of the balloon for $84,350 cash now. With the $13,500 down payment, that's $97,850 now, plus the Seller gets the remaining $43,150 of the balloon in 10 years.
Option 1C: Sell for $121,500 (full price) payable as $60,750 now and an additional $60,750 in 75 months. With the down payment of $13,500 that's $74,250 cash now, plus $60,750 in 75 months, for a total of $135,000.
Option 1D: Sell the entire Note for $97,300 cash. With the $13,500 down payment, that's $110,800 cash now. The discount makes this the poorest choice, but if the Seller needs cash now it may be better than no sale, or waiting for a long time to sell at a substantially reduced price to the Buyer willing to pay all cash.
EXAMPLE NO. 1  EXAMPLE
NO. 2 EXAMPLE
NO. 3
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