Seller Financing: Earn Monthly Payments on Your Property

Key Takeaways

You act as the bank and receive monthly payments with interest from Focus Estate Management
Works for owners who own free and clear or are willing to wait on some of their equity
You earn interest income on the financed amount, often at better rates than savings or CDs
Flexible terms negotiated directly between you and us
No agent commissions, no closing costs on your end

Seller financing lets you sell your property to Focus Estate Management while receiving monthly payments over time instead of (or in addition to) a lump sum. You essentially become the lender, earning interest on the balance owed. This is a great option if you own your home free and clear and want steady monthly income, or if you are willing to carry back part of your equity while enjoying interest earnings.

How Does Seller Financing Work?

We agree on a purchase price based on the property’s condition and market value
We negotiate terms: down payment amount, interest rate, monthly payment, and loan term
Title transfers to us at closing, secured by a promissory note and deed of trust
You receive monthly payments including principal and interest for the agreed term
Your investment is secured by the property itself through the deed of trust

Who Benefits from Seller Financing?

Free-and-clear owners: If you own your home outright with no mortgage, seller financing turns your property into an income-producing asset without the work of being a landlord
Owners who want better returns: Interest rates on seller-financed notes often exceed what banks pay on savings accounts or CDs
Owners who want to spread out tax liability: Receiving payments over time rather than a lump sum can have tax advantages (consult your tax advisor)
Owners willing to wait on equity: If you do not need all the cash now, financing gives you monthly income plus interest

How Does This Compare?

Option	What You Get	Timeline	Ongoing Income
Seller Financing	Down payment + monthly payments with interest	Fast closing, payments over years	Yes, for the loan term
Cash Sale	Full lump sum at closing	7-14 days	No
Traditional Sale	Sale price minus 7-12% costs	60-120+ days	No
Lease-Option	Lease payments (you keep title)	Ongoing	Yes, lease payments

Frequently Asked Questions

What if you stop making payments?

The deed of trust secures your interest. If payments stop, you have the legal right to foreclose and take the property back, just like a bank would. You retain the down payment and any payments already made.

Do I need to own the property free and clear?

Not necessarily. If you still have a mortgage but are willing to carry back part of your equity above the existing loan balance, seller financing can still work. We discuss the specifics during our evaluation.

What interest rate can I expect?

Rates are negotiated between us and vary based on the property, down payment, and term. They are typically competitive with or above current market rates, making this an attractive investment for you.

How is this taxed?

Seller financing is typically treated as an installment sale for tax purposes, which can spread your capital gains over multiple years. We strongly recommend consulting with a tax professional for your specific situation.

Can I sell the note later if I need cash?

Yes. Seller-financed notes can be sold to note buyers on the secondary market if you later decide you want a lump sum. The note’s value depends on the terms, property, and payment history.

Own a property free and clear? Want monthly income instead of a one-time payout?
Call (253) 733-0007 or tell us about your property to discuss seller financing.