Deal Structure Term
Seller financing explained for apartment owners reviewing deal structure and buyer pool options.
By Don Favia · Updated July 3, 2026
Direct Answer
Seller financing is a sale structure where the seller provides financing to the buyer for part of the purchase price. It can affect buyer demand and deal terms, but it also creates credit, legal, tax, and enforcement issues that require advisor review.
Seller financing may widen the buyer pool or bridge a financing gap, but it is not free money. Owners need to understand repayment risk, collateral, documentation, tax treatment, and legal protections.
This is for general informational purposes only. Consult with your CPA, tax advisor, attorney, and lender for guidance specific to your situation.