[Elizabeth Smith]

Elizabeth Smith

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.

[Jackie Lange]

Jackie Lange

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

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

[Elizabeth Smith]

Elizabeth Smith

That makes sense, thanks!