Is there a sweet spot for a down payment amount on an HBS, seller finance deal?


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  • My question is: is it possible to miss out if I am offered TOO much down payment money for an HBSale in the case of seller financing.
    For instance, I get an option on a house with seller financing for X amount of dollars, with the right to do an HBS. I turn around and set my selling price at X dollars plus an additional Y amount over the price I bought it for, then I do a HBS to find a highest down payment bidder/buyer and offer THEM seller financing. I understand I get the difference between X and Y…but my question is the down payment.

    Say someone bids a down payment of 90% of that X plus Y amount….I would lose out on all the years of interest income I would have made had they only offered 20%. Is there a sweet spot that makes the most sense financially for this type of deal?
    Thanks for your help.

    You will usually get 10-20% down. Sometimes 30%

    if someone has 90% down, they will likely just pay cash for a different house.

    That makes sense, thanks!

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