B&b Buy Here Pay: Here

Before entering a seller-financed B&B deal, consider these common structural elements:

: Instead of a bank providing a mortgage, the person selling the B&B acts as the lender. b&b buy here pay here

: If a buyer can only get a bank loan for 70% of the price, the seller might "hold a note" for the remaining 30%. Before entering a seller-financed B&B deal, consider these

: The property itself secures the loan. If the buyer defaults, the seller can take the property back through foreclosure. 2. Why Use This for a B&B? If the buyer defaults, the seller can take

: If you can't refinance when the balloon payment is due, you could lose the property and all the equity you've paid in.

: Expect to put down a significant amount—often 10% to 25% —to prove you are a serious operator and to protect the seller's equity. 4. Risks to Watch Out For

: Many seller-financed deals are short-term (e.g., 5 years). At the end of the term, a "balloon payment" for the remaining balance is due, usually requiring the buyer to refinance with a bank at that point.