Seller financing, also known as an owner carry note, presents advantages for both buyers and sellers. Here are some key benefits:

For Buyers:

1. Access to Financing: Buyers who might not meet the criteria for traditional bank loans can still secure funding through owner carry notes.

2. Flexible Terms: Seller financing offers flexibility with terms like lower down payments, longer repayment periods, and potentially relaxed credit requirements.

3. Efficient Transactions: Compared to conventional mortgages, owner carry notes involve less paperwork and typically result in faster transactions.

4. Negotiation Opportunities: Buyers have room to negotiate terms directly with the seller, possibly securing more favorable conditions.

For Sellers:

1. Expanded Buyer Pool: Offering seller financing widens the pool of potential buyers, including those ineligible for traditional financing.

2. Steady Income: Sellers earn a consistent income stream through interest on financing, providing an additional passive revenue source.

3. Tax Benefits: Sellers may enjoy tax advantages, such as spreading out capital gains and deferring tax obligations over time.

4. Accelerated Property Sale: Seller financing speeds up property sales by making it more accessible to buyers, often leading to quicker transactions.

While owner-carry notes offer significant benefits, both buyers and sellers should carefully assess the terms and risks involved, including legal considerations and potential default scenarios.